IPO-bound Go Fashion to add 2,000 new stores in six-seven years, says CEO Gautam Saraogi

IPO-bound Go Fashion to add 2,000 new stores in six-seven years, says CEO Gautam Saraogi

© Shweta Mungre
IPO-bound Go Trend so as to add 2,000 new shops in six-seven years, says CEO Gautam Saraogi

IPO-bound Go Trend, identified for its model Go Colours, with an purpose to emerge as the underside put on vacation spot for girls throughout the nation, plans to launch about 2000 unique model retailers within the nation within the six-seven years. The corporate at the moment operates about 459 Unique Model Outlet(EBO) within the nation, which contributed about 69 % of its income within the monetary 12 months 2021.

“We might be following a cluster-based enlargement mannequin for retailer enlargement and might be opening new shops within the neighborhood of present shops so there’s higher model recall,” stated Gautam Saraogi, founder and CEO, Go Trend. “Now we have already recognized tier III, IV, and V cities the place we’re doing nicely via our presence is massive shops codecs and could be opening new shops,” he added.

The corporate can also be going to undertake an omnichannel strategy henceforth, given the net push as a result of pandemic and might be enabling all its shops for on-line deliveries additionally to neighbourhood areas.

Go Trend plans to launch its preliminary public providing from November 17-22. The corporate is trying to elevate Rs 1,013.6 crore via the general public situation, which can encompass a contemporary situation of Rs 125 crore and a suggestion on the market of Rs 888.6 crore. Its promoters PKS Household Belief, VKS Household Belief and shareholders Sequoia Capital India Investments IV, India Benefit Fund S4 I, and Dynamic India Fund S4 US I might be promoting their shares.

The corporate plans to roll out 120 extra EBOs with the funding proceeds from the IPO. Go Trend, stated its founder, invests about Rs 23 lakh (Rs 18 lakh capital expenditure and Rs 5 lakh of deposits) in establishing a retailer.“We’re in a position to get well our investments in a retailer inside 1.5-2 years on a median,” he added.

The style story

Based by Gautam Saraogi and Prakash Saraogi in 2011, the Chennai-based firm goals to handle the necessity hole for ‘backside put on’ as girls shoppers transition from carrying sarees to kurtas, salwar kameez and western apparel.

“We had been within the garment export enterprise for greater than twenty years and in 2010-2011, we determined to enterprise into the retail area. At the moment, there was an enormous transition taking place within the girls’s put on market. Ladies shoppers had been shifting from sarees to two-piece apparel,” recounted Saraogi.

“Whereas learning this market, we realised that whereas a number of corporations had been catering to the highest put on market, the underside put on market was much less aggressive and therefore we determined to enter,” he provides.

The corporate within the preliminary days of its journey focussed on promoting via kiosks and arrange its first kiosk in Chennai in 2011 and after receiving a great response, launched extra kiosks. In 2014, the corporate was promoting backside put on similar to leggings out of 80 kiosks. Nevertheless, it quickly realised the mannequin was unsustainable after reaching a sure scale, and in addition that trial rooms had been vital for this product class. Therefore, the corporate launched its first retailer in 2014.

“The client response was fabulous and we tripled our gross sales as in comparison with kiosks,” stated Saraogi.

The founder duo then focussed on increasing its EBO’s in addition to its presence in multi-brand retailers and for this, it raised about Rs 60 crore from Sequoia Capital and Rs 100 crore from ICICI Ventures.

Financials and means ahead

Go Trend, in keeping with its DRHP, clocked a income of Rs 250.6 crore in FY21, a 36.06 % decline from Rs 392 crore registered in FY20. In accordance with the corporate, the dip in its income was majorly on account of the influence of the COVID-19 pandemic on footfalls. It closed about 26 shops in FY21 as a result of influence of the pandemic. The corporate had recorded a revenue of Rs 52.6 crore in FY20 as in comparison with a lack of Rs 3.5 crore in FY21 as a result of pandemic.

“The sale of merchandise decreased by 35.99 % from Rs 390.6 crore in fiscal 2020 to Rs 250 crore in Fiscal 2021, primarily pushed by the influence of COVID- 19 and the momentary closure of plenty of our shops on account of lockdown-related restrictions on our enterprise operations,” Go Fashions India stated in its DRHP.

Nevertheless, the corporate’s sale of merchandise elevated by 199.95 % from Rs 10.2 crore within the three months ended June 30, 2020 to Rs 30.8 crore in three months June 30, 2021, it stated.

The corporate has set its sight on the Rs 4000 crore branded bottoms put on market and goes to give attention to the class within the 12 months forward.

“In accordance with a report by Technopak, the branded addressable market in India is estimated to be Rs 4000 crore, of which we have now an 8 % share,” stated Saraogi.

“We see immense progress potential on this section and plan to stay to it as our addressable market goes to develop to Rs 11,000 crore by 2025, whereas we additionally improve our share in it,” he added.

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