Jaypore had set up its first offline store in New Delhi last week working on a curated marketplace model sourcing apparel, jewellery, lifestyle accessories and home decor from about 500 vendors.
To carry itself along the omnichannel wave in the country’s retail landscape, online artisanal e-commerce platform Jaypore has kept aside Rs 10 crore for the first phase of its offline expansion.
Jaypore had set up its first offline store in New Delhi last week working on a curated marketplace model sourcing apparel, jewellery, lifestyle accessories and home decor from about 500 vendors. Of the network, about 300 vendors form its active merchant base.
Puneet Chawla, Co-founder, and CEO of Jaypore said, “We are looking to open between 4-8 stores across the top four metros with 1-2 stores in each of them in the next 12 months. Depending on how this first phase goes, we will figure out the expansion for the next 24-36 months.”
Jaypore, which has raised over Rs 75 crore so far, will see its stores tilt towards its private label brands which currently form about 30% of the business across categories of apparel, jewellery and lifestyle accessories. “The percentage share of private labels in offline stores will be higher than online but that said, the stores will not be private-label only,” said Chawla.
Jaypore currently clocks Rs 3,500-4,000 as its average order value online while early numbers in its first store suggest higher offline order values at about Rs 5,000. Chawla expects the offline order value to further increase by 20-25%, a move that will see the firm tread faster towards profitability with a significant fillip to its current monthly revenue of Rs 5 crore.
Chawla said, “Our business plan projects that the offline (model) should contribute 30-40% of our overall revenues in the next 18 months. We expect most of our stores to turn EBITDA positive within 3-6 months of operations. At an organisational level, we will be profitable then.”
Founded in 2012 by Chawla, who was previously with a string of consumer internet ventures such as publicly-listed Info Edge, redBus and Exclusively.in, and Shilpa Sharma, formerly with Fabindia, Jaypore is backed by impact investment firm Aavishkaar of the Aavishkaar-Intellecap Group along with Haresh Chawla, partner at private equity firm True North and TableHero Founder Deap Ubhi.