Zivame is also planning to raise funds to the tune of $50 million within this fiscal.
Zivame is planning to open 60 offline stores in metros and tier I cities over the next 12-18 months. The brand is looking at further strengthening its Omnichannel play in the growing segment.
Actoserba, which runs Zivame, is eyeing to achieve break-even in the next 12 months. The online intimate wear retailer has narrowed its losses from more than Rs 32 crore in FY18 to Rs 19.56 crore in FY19.
Amisha Jain, CEO of Zivame, said, “Last one year has been phenomenal as we have strengthened our position across categories and deepened our presence in the markets. With tech, data and innovation at the heart of everything we do, we are set up for exponential growth over the next few years.”
In India, the intimate wear market is about $3 billion, of which only 40% is organised.
“This market is expected to grow to $6 billion in the next five years, and the share of organised retail is poised to grow to 60 percent,” she added.
Growth target of Zivame
Zivame is poised to hit over 75% growth for the next few years.
Having more than 40 retail stores in tier I markets, the company aims to take this number to 100 over the next 12-18 months. It eyes to deepen its presence in these markets.
In FY19, the company’s revenue from operations grew to Rs 137.9 crore from Rs 86.6 crore in the previous year. The intimate wear retailer’s marketing expenses decreased by 18% in FY19 vis-a-vis FY18, while the total expenses increased by 1%.
Jain further stated, “Currently, Zivame brand has hit Rs 340 crore annual run rate for FY20. While our offline business is growing at a very strong pace, our online business also continues to do extremely well. The app contribution for Zivame brand gross sales has increased from 50 percent in FY18 to 65 percent in FY19; we should be able to break-even in the next 12 months.”
Zivame is also planning to raise funds to the tune of $50 million within this fiscal. The brand counts Zodius Capital, Unilazer Ventures and Khazanah Nasional Bhd among its investors.
In 2019, Zivame has secured Rs 60 crore in funding as part of a bridge round, led by Zodius Technology Fund and a group of high net worth individuals, and Rs 10 crore in an extended series C Round from Allana Investment and Trading Company.