India-based online fashion brand FableStreet is venturing into the offline retail segment with plans to open ten to 15 physical stores in the country by mid-September 2024.
The Economic Times Retail (ETRetail) reported that the brand, which is owned by FS Life, will initially open stores in relevant malls and prominent high streets of metro and Tier I cities, with plans to expand it to Tier II and beyond later.
Speaking to ETRetail, FS Life founder and CEO Ayushi Gudwani said that between mid-September and October next year, FableStreet will open three stores at Phoenix Marketcity in Kurla, Phoenix Palladium in Lower Parel and Phoenix Mall of Millennium in Pune, Maharashtra.
In addition, the retailer is looking for places to open stores in Delhi and Bengaluru, as it aims to open at least five stores by the end of this fiscal year.
The report said that the average store size will range from 700-1,000ft² and will be developed with capital expenditures (CAPEX) of Rs30,00,000 – 50,00,000 ($36,091 – $60,152).
The stores will offer anywhere between 200 and 250 styles.
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By GlobalDataIn addition to serving customers in person, these stores are expected to deliver an omnichannel experience by enabling customers to browse the website and place orders in-store.
FableStreet expects these stores to achieve profitable earnings before interest, taxes, depreciation and amortisation (EBITDA) in the first two to three months of operation and recover capital investments in one to one-and-a-half years.
ETRetail quoted Ayushi Gudwani as saying: “By the end of this fiscal, the offline retail will contribute around 5 per cent of the overall revenue and by the end of next fiscal, we are aiming to take it up to 25-30%.
The brand, which is backed by the early-stage venture fund Fireside Ventures, has already succeeded at three rounds of funding.
It has committed approximately 20% of its funding to offline expansion as a loan.
Gudwani added: “We are planning to raise Series B investment and expect to hit the market early next year. We expect to raise $15-20m to expand our offline presence and scale online presence and we will also be using these funds for working capital and inventory build-up.”
