Menswear startup Snitch, which recently raised Rs 110 crore from investors such as Singapore’s SWC Global and IvyCap Ventures, expects to see its sales crossing Rs 250 crore in FY24, from Rs 110 crore a year ago.
“In terms of GMV (gross merchandise volume), we are almost at Rs 600 crore annual revenue run-rate (ARR) currently,” founder and CEO Siddharth Dungarwal told FE. The startup sells men’s clothing, accessories and perfume on online channels as well as through a few of its offline stores.
New-age brands such as Snitch have largely benefitted from consumers shifting to domestic brands, when it comes to clothing, beauty and personal care, over the last 3-4 years. Moreover, venture capitalists and investors have also not shied away from betting on Indian consumer brands recently.
Among the menswear brands that saw funding activity recently are Bombay Shirt Company, which raised Rs 54 crore in a Series B round led by Singularity, and Gurugram-based Louis Stitch, which raised Rs 5 crore in pre-Series A round from Space World Group.
Snitch mostly operates in the price range between Rs 800 and Rs 1,500, with an average selling price of Rs 1,100. This range makes it more affordable than premium brands like H&M and Zara, but a tad costlier than a Zudio or Max. But unlike these brands, which focus largely on women’s clothing, Snitch only offers menswear.
According to Dungarwal, the branded menswear market in the country is as big as $3-4 billion, while the unbranded market is even bigger by 70-80%. Snitch’s latest fundraise will be used to build a leadership team, an internal tech stack for its app, enterprise resource planning and marketing, as also to increase inventory and expand offline.
It is also building a large warehouse in Yelahanka in Bengaluru, which is more than 100,000 sq ft in area. The company plans to have about 20 retail stores by year-end in cities such as Bengaluru, Hyderabad, Delhi and Chennai, and is working on a new line of plus-size clothing, Dungarwal said.
The average order value at physical stores is 2x of online channels, the founder said, adding that he hopes to have an online-offline revenue mix of 75% and 25%, respectively, in the next one year. Currently, about 90% of its business is coming from online channels.