FableStreet, the online fashion brand, is venturing into brick-and-mortar retail, with ambitious plans to establish 10 to 15 stores by mid-September of the following year, as shared by Ayushi Gudwani, the Founder and CEO of FS Life.
The brand supported by Fireside Ventures is set to launch three flagship stores between mid-September and October. These stores will be located at Phoenix Marketcity in Kurla, Phoenix Palladium in Lower Parel, and Phoenix Mall of Millennium in Pune.
Additionally, the brand is actively exploring potential locations to establish stores in Delhi and Bengaluru.
“The average store size will be between 700-1,000 sq.ft and we plan to open at least five stores by the end of this fiscal,” she said.
At the outset, the brand will inaugurate its stores in well-suited malls and prime high street locations within metro and tier I cities. Subsequently, it will expand its presence further into tier II and beyond.
These stores are designed to provide an omnichannel experience, allowing customers to effortlessly explore the website and make in-store purchases. Nonetheless, the stores will consistently feature a selection of 200 to 250 styles at any given time.
“As we keep churning the inventory at a rapid speed, the store will be refreshed every two weeks,” she said.
The capital expenditure (CAPEX) required to launch a single store can vary between INR 30-50 lakh. The brand’s goal is to attain EBITDA profitability for each store within the initial 2-3 months of operation and recoup the capital investments within 1-1.5 years.
The brand boasts a 50 percent repeat customer rate, with an average cart size ranging from INR 3,200 to INR 3,300. Its online customer acquisition cost (CAC) falls within the range of INR 1,200 to INR 1,400.
Last fiscal, the brand notched INR 58 crore in revenue, and for the current fiscal year, it is setting its sights on exceeding the INR 100 crore milestone.
“By the end of this fiscal, the offline retail will contribute around 5 per cent of the overall revenue and by the end of next fiscal, we are aiming to take it up to 25-30 per cent,” she stated.
Having secured three rounds of funding thus far, the brand has dedicated approximately 20 percent of its fundraising efforts to finance its offline expansion in the form of a loan.
“We are planning to raise Series B investment and expect to hit the market early next year. We expect to raise $15-20 million to expand our offline presence and scale online presence, and we will also be using these funds for working capital and inventory build-up,” she said.
In addition to the established seven-year-old FableStreet, FS Life introduced two new brands – March Jewellery and PinkFort – just six months ago. The company anticipates that these two brands will contribute approximately 10-12 percent of its total revenue.