Zivame to expand offline footprint, eyes break-even in 12 months
Zivame will set up 60 offline stores in metros and Tier I cities over the next 12-18 months, as the online intimate wear retailer looks to further strengthen its omni-channel play in the growing segment.
Actoserba (which runs Zivame) has narrowed its losses from over Rs 32 crore in FY18 to Rs 19.56 crore in FY19, and is looking to achieve break-even in the next 12 months.
"Last one year has been phenomenal as we have strengthened our position across categories and deepened our presence in the markets. With tech, data, and innovation at the heart of everything we do, we are set up for exponential growth over the next few years," Zivame CEO Amisha Jain told PTI.
She added that the company is poised to hit over 75 percent growth for the next few years.
"We have more than 40 retail stores in Tier I markets, and we are looking at taking that number to 100 over the next 12-18 months. We will deepen our presence in these markets," she said.
The company's revenue from operations grew to Rs 137.9 crore in FY19 from Rs 86.6 crore in the previous year. Its marketing expenses decreased by 18 percent in FY19 vis-a-vis FY18, while the total expenses increased by one percent.
"Currently, Zivame brand has hit Rs 340 crore annual run rate for FY20. While our offline business is growing at a very strong pace, our online business also continues to do extremely well. The app contribution for Zivame brand gross sales has increased from 50 percent in FY18 to 65 percent in FY19. We should be able to break-even in the next 12 months," Amisha said.
The online channel accounts for about 80 percent of Zivame's business, while the remaining comes from offline retail.
Jain said the company is focussing on four areas to drive growth -- continuous product innovation, great consumer experience, omni-channel presence, and its new brand identity.
"This year, we unveiled a new brand identity with the tagline 'Love Yourself Inside Out'. This aligns with our vision of creating an exciting, modern and inclusive environment for women to discover and shop for their intimate wear needs. Be it through products or content, we want to create dialogue and engagement around the category," she added.
Talking about the market opportunity, Amisha said the intimate wear market in India is about $3 billion, of which only 40 percent is organised.
"This market is expected to grow to $6 billion in the next five years, and the share of organised retail is poised to grow to 60 percent," she added.
Zivame, which counts Zodius Capital, Unilazer Ventures, and Khazanah Nasional Bhd among its investors, is also looking at raising funds to the tune of $50 million (about Rs 350 crore) within this fiscal.
This year, Zivame raised Rs 60 crore in funding as part of a bridge round, led by Zodius Technology Fund and a group of high net worth individuals (HNIs), and Rs 10 crore in an extended Series C round from Allana Investment and Trading Company.
In 2015, it had raised Rs 250 crore in Series C funding round from Zodius Technology Fund and Khazanah Nasional Bhd, the investment holding arm of the Government of Malaysia, and $6 million from Unilazer Ventures in 2013. Ratan Tata has also invested an undisclosed amount in the company.
(Edited by Megha Reddy)