In a remarkable turnaround, D2C fashion brand The Souled Store achieved profitability in the financial year ending March 2024 (FY24), driven by a sharp increase in revenue and improved margins. The company recorded a net profit of INR 18.2 crore, a stark contrast to its loss of INR 16.5 crore in FY23.
Revenue Shoots Up
Revenue shot up by 54.26%, reaching INR 360.2 crore compared to INR 233.5 crore in the previous fiscal year. Of this, INR 5.2 crore came from membership fees, while the bulk of its income was generated through product sales.
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Launched in 2013 by Vedang Patel, Rohin Samtaney, Aditya Sharma, and Harsh Lal, The Souled Store initially focused on branded merchandise but later evolved into a full-fledged D2C casual wear brand. Its offerings now include not just apparel but also backpacks, sneakers, shoes, and socks, catering to both kids and adults.
An Awesome EBITDA Profit
On the operational front, the startup posted an EBITDA profit of INR 18.6 crore in FY24, compared to an EBITDA loss of INR 8 crore in FY23. The EBITDA margin also improved significantly, rising to 5% from a negative 3% the previous year.
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However, its cash reserves dropped to INR 14.4 crore at the end of FY24, down from INR 114.1 crore a year earlier. To date, The Souled Store has secured total funding of $30 million. Its most recent funding round in 2023 raised INR 135 crore, led by Xponentia Capital, with continued support from existing investors Elevation Capital and RPSG Capital.
