Fashion and lifestyle brand Yepme, which is run by Vas Data Services, is clocking losses of Rs 4 crore per month, according to the company’s founder and COO, Sandeep Sharma. Sharma told FE that the business is reporting revenues of Rs 20 crore per month.
At the current rate, the company for the last three months from April-July is reporting losses of R12 crore on revenues of Rs 60 crore.
In 2015-16, Yepme reported a loss of Rs 96 crore on revenues of Rs 130 crore. Yepme claims to generate 20-30% sales from third party online players including Amazon and Flipkart besides Myntra. The company is now in the process of opening its retail outlets across the country.
“After operating as an online fashion and lifestyle label for some time now, the need to go offline was felt for the next level of evolution. We want to now turn Yepme into a brand and for that one needs to have presence in retail outlets,” said Sharma.
The company plans to open 100 stores by March 2017 and 400 stores in the next two-three years. At present, Yepme has 7 stores in various location including Gurgaon where it has two stores.
The company is following a franchise based model to open stores across the country. “Of the total number 10-20% will be flagship stores and will be run by master franchises. The size of these stores will range from 5,000-10,000 sq feet,” explained Sharma.
At the same time, the company is looking at raising fresh funds of $20 million by end of this year. Last year in September Yepme had raised $50 million from Malaysian state fund Khazanah Nasional Berhad and other existing investors including Helion Venture Partners, JS Capital, TCS Global, amongst others.
Interestingly, Yepme isn’t the first online fashion brand to go offline.
In 2013, American Swan, an online fashion brand had gone offline by selling its products through multi-brand retail outlets. The company had also opened a few stores in the National Capital Region (NCR) through franchise based model, which were later shutdown.