The Souled Store raises Rs 135 crore funding led by Xponentia Capital
The Souled Shop, a lifestyle and fan goods firm based in Mumbai, has secured roughly $16.4 million in a Series C round headed by Xponentia Capital Partners and featuring participation from previous investors Elevation Capital and RPSG Capital. This represents the biggest consumer sector investment made by Xponentia Capital.
The business intends to open more than 100 outlets around the nation in the next two years and will utilise the funding to diversify into additional product categories. The Souled Store's ESOP (Employee Stock Ownership Plan) scheme will also include a 100% buyback of shares held by vested employees.
"We will purchase every vested ESOP because we want to establish a practise of doing so. Vedang Patel, co-founder of The Souled Store, said, "We have been picky about who we have given ESOPs to and we would like our employees to find value in it. He withheld information about the ESOP buyback's size.
As of May last year, the company had allocated 3.7% shares to its ESOP plan according to data platform Tracxn, at an unrealised value of Rs 29.7 crore. It currently has 12 stores across five cities and has already added sneakers and kidswear to its offerings, besides fan merchandise apparel for the target group of 18-32-year-olds.
“Of the 12 stores, eight were opened last year. Our stores take a maximum of two to three months to recover the capex. We have stores in Bengaluru, Pune, Gurugram, Mumbai, and Indore,” said Patel. The idea for offline expansion for its first store in Mumbai came when the startup realised the cost of outdoor billboard advertising at Bandra was as high as renting out a physical store, according to Patel.
The Souled Store was founded in 2013 by Patel, along with Rohin Samtaney, Aditya Sharma, and Harsh Lal. Since then it raised nearly $13.1 million in funding, according to data from Tracxn. Actor Sara Ali Khan who invested in the startupin March 2022 is its brand ambassador.
“The Souled Store has established a distinctive brand and is in the process of creating a large community that identifies and relates with its casual wear products,” said PR Srinivasan, Managing Partner at Xponentia Capital, in a statement. He added, “We look forward to supporting Vedang and his team as The Souled Store continues to innovate and delight its customers.”
The Souled Shop, almost 70% of orders come via its website, 15% come from other online marketplaces, and the remaining 40% come from its physical stores. "We have developed a loyal, dependable customer base, and in just six months, our return rates have reached 90%. We have figured this out because the majority of direct-to-consumer brands get roughly 80% of their orders through online marketplaces, Patel said.
The Mumbai-based business currently asserts to have an annualised Gross Merchandise Value revenue of Rs. 450 crore (the total value of goods sold over a period of time by an online platform). According to Tracxn, it recorded losses of $2.8 million for the fiscal year 2021. It competes with games like Nodwin Gaming's Planet SuperHeroes.
The business intends to open more than 100 outlets around the nation in the next two years and will utilise the funding to diversify into additional product categories. The Souled Store's ESOP (Employee Stock Ownership Plan) scheme will also include a 100% buyback of shares held by vested employees.
"We will purchase every vested ESOP because we want to establish a practise of doing so. Vedang Patel, co-founder of The Souled Store, said, "We have been picky about who we have given ESOPs to and we would like our employees to find value in it. He withheld information about the ESOP buyback's size.
As of May last year, the company had allocated 3.7% shares to its ESOP plan according to data platform Tracxn, at an unrealised value of Rs 29.7 crore. It currently has 12 stores across five cities and has already added sneakers and kidswear to its offerings, besides fan merchandise apparel for the target group of 18-32-year-olds.
“Of the 12 stores, eight were opened last year. Our stores take a maximum of two to three months to recover the capex. We have stores in Bengaluru, Pune, Gurugram, Mumbai, and Indore,” said Patel. The idea for offline expansion for its first store in Mumbai came when the startup realised the cost of outdoor billboard advertising at Bandra was as high as renting out a physical store, according to Patel.
The Souled Store was founded in 2013 by Patel, along with Rohin Samtaney, Aditya Sharma, and Harsh Lal. Since then it raised nearly $13.1 million in funding, according to data from Tracxn. Actor Sara Ali Khan who invested in the startupin March 2022 is its brand ambassador.
“The Souled Store has established a distinctive brand and is in the process of creating a large community that identifies and relates with its casual wear products,” said PR Srinivasan, Managing Partner at Xponentia Capital, in a statement. He added, “We look forward to supporting Vedang and his team as The Souled Store continues to innovate and delight its customers.”
The Souled Shop, almost 70% of orders come via its website, 15% come from other online marketplaces, and the remaining 40% come from its physical stores. "We have developed a loyal, dependable customer base, and in just six months, our return rates have reached 90%. We have figured this out because the majority of direct-to-consumer brands get roughly 80% of their orders through online marketplaces, Patel said.
The Mumbai-based business currently asserts to have an annualised Gross Merchandise Value revenue of Rs. 450 crore (the total value of goods sold over a period of time by an online platform). According to Tracxn, it recorded losses of $2.8 million for the fiscal year 2021. It competes with games like Nodwin Gaming's Planet SuperHeroes.
