The Souled Store, a homegrown pop culture-driven fashion brand, has had a stellar run in FY24, clocking a 54.5% year-on-year revenue growth and turning profitable for the first time. Backed by Xponentia Capital, the Mumbai-based D2C company saw its revenue from operations jump from ₹233 crore in FY23 to ₹360 crore in FY24, as per its latest filings with the Registrar of Companies (RoC).
From Pop Culture Fandom to a ₹365 Crore Business
Launched in 2014, The Souled Store has carved a niche in the fashion space by tapping into pop culture enthusiasts with apparel inspired by superheroes, movies, and TV shows. Over the years, the brand has expanded its catalog beyond clothing to include footwear, accessories, books, mobile covers, notebooks, mugs, and more.
With a growing offline presence, The Souled Store now operates 18 stores across India. Online and offline product sales accounted for 98.6% of total revenue, amounting to ₹355 crore in FY24. The remaining income came from membership fees and financial gains, including ₹5 crore from interest on deposits and current investments, bringing its total revenue to ₹365 crore.
Breaking Down the Costs: Profitability Despite Rising Expenses
Scaling up comes with rising costs. The brand’s procurement expenses surged 68.5% to ₹150 crore, making up 42.2% of total spending. Employee benefits and rent expenses grew by 34.5% and 77.8%, respectively, while marketing expenses hit ₹68 crore. Freight, legal fees, and operational costs pushed total expenditure to ₹355 crore in FY24, up from ₹253 crore in FY23.
Despite these rising costs, The Souled Store posted a net profit of ₹18 crore in FY24, a significant turnaround from its ₹16.5 crore loss in FY23. The company’s Return on Capital Employed (ROCE) improved to 6.38%, while EBITDA margins stood at 5.21%.
At the close of FY24, The Souled Store had total current assets worth ₹225 crore, including ₹44 crore in cash and bank balances.
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Investor Backing & Competition in India’s Fast-Growing Fashion Space
The Souled Store has raised close to $30 million so far, with a $16 million round led by Xponentia Capital in 2023 and $10 million from Elevation Capital in 2021. According to data from TheKredible, Elevation Capital remains the largest external shareholder, followed by Xponentia Capital.
The company competes with Rare Rabbit, which clocked ₹636 crore in revenue with a ₹76 crore profit in FY24; Bewakoof, which operates at ₹162 crore in revenue; and Virat Kohli-backed WROGN, which saw a revenue dip of 29% to ₹244 crore.
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Challenges & Opportunities: Will The Souled Store Stay True to Its D2C Roots?
The Indian D2C fashion space is heating up, and The Souled Store’s challenge will be to maintain its brand identity without diluting its exclusivity. While expanding across multiple sales channels may seem tempting, it could risk alienating its core audience of young, non-conformist consumers who value niche, limited-edition merchandise.
Additionally, with older comic book franchises like Tintin, Asterix, and Phantom moving into lower licensing costs or public domain, The Souled Store has a unique opportunity to tap into nostalgia-driven merchandise beyond just Gen Z and Millennials, potentially attracting older fans as well.
With profitability now in sight, the big question remains—can The Souled Store sustain its growth while staying true to its pop-culture DNA?
