Zivame will expand its footprint offline, achieve a balance in 12 months
New Delhi, December 1 () Zivame will establish 60 offline stores in level I subways and cities over the next 12-18 months, as the online intimate clothing retailer seeks to further strengthen its omnichannel game in the segment in increase.
Actoserba (directed by Zivame), which has reduced its losses from more than 32 million rupees in fiscal year 2018 to 19.56 rupees in fiscal year 19, is also looking to reach a breakeven point in the next 12 months.
The last year has been phenomenal since we have strengthened our position in all categories and deepened our presence in the markets. With technology, data and innovation at the center of everything we do, we are prepared for exponential growth in the coming years, said Zivame CEO Amisha Jain.
He added that the company is prepared to achieve a growth of more than 75 percent in the coming years.
We have more than 40 retail stores in level I markets and we are looking to bring that number to 100 in the next 12-18 months. We will deepen our presence in these markets, he said.
The company's revenues from operations increased to Rs 137.9 crore in the previous fiscal year from Rs 86.6 crore in the previous year. Its marketing expenses decreased by 18% in fiscal year 19 compared to fiscal year 2018, while total expenses increased by 1%.
Currently, the Zivame brand has reached the annual execution rate of Rs 340 crore for the fiscal year2020. While our offline business is growing at a very strong pace, our online business also continues very well. The application's contribution to gross sales of the Zivame brand has increased from 50 percent penny in FY18 to 65 percent in FY19 ... we should be able to reach the breakeven point in the next 12 months, Jain said.
The online channel accounts for approximately 80 percent of Zivame's businesses, while the rest comes from offline retail.
Jain said the company is focusing on four areas to drive growth: continuous product innovation, great consumer experience, omnichannel presence and its new brand identity.
This year, we present a new brand identity with the motto 'Love Yourself Inside Out'. This aligns with our vision of creating an exciting, modern and inclusive environment for women to discover and buy their intimate clothing needs. Whether through products or content, we want to create dialogue and commitment around the category, he said.
Speaking about the market opportunity, Jain said that the intimate clothing market in India is approximately USD 3 billion, of which only 40 percent is organized. This market is expected to grow to USD 6 billion over the next five years, and the participation of organized retail is about to grow to 60 percent, he added.
Zivame, which has Zodius Capital, Unilazer Ventures and Khazanah Nasional Bhd among its investors, is also looking to raise funds worth USD 50 million (around Rs 350 million rupees) under this tax.
This year, Zivame has raised Rs 60 million in funds as part of a round of bridges, led by the Zodius Technology Fund and a group of high-heritage individuals, and Rs 10 million in an extended series C round of Allana Investment and Trading Company In 2015, Rs 250 Rs was raised in the series C financing round of Zodius Technology Fund and Khazanah Nasional Bhd, the Malaysian government's investment arm and USD 6 million from Unilazer Ventures in 2013. Ratan Tata has also invested an undisclosed amount in the company. SR BAL