The digital-first ethnic fast fashion brand Libas is planning to open more than 300 EBOs in the next four years. This fiscal, the brand is eyeing to open 25-30 EBOs and expand its presence across 650 MBOs.
At present, the brand has 12 EBOs and has a presence across 400 MBOs such as Lifestyle, Shoppers Stop, Central, etc.
While talking exclusively to ETRetail, Sidhant Keshwani, founder & CEO, Libas said that the brand is targeting both malls as well as high-streets to open its stores.
“Initially, we are targeting metro cities like Delhi, Bangalore, Mumbai, and Chennai, and after penetrating the metro cities, we will be entering Tier II and beyond,” he said.
The brand is planning region-wise expansion starting from north, followed by south, east, and west.
The average store size of Libas will be between 1,200-1,800 sq.ft and the CAPEX involved will be Rs 1.3 crore for each store.
“We will be following a company-owned company-operated (COCO) model for all the EBOs that we are planning to open,” he stated.
Libas, which has been bootstrapped till now, is also looking at raising the first round of funding worth Rs 150-200 crore to aid the offline expansion growth for the next two years.
The brand, which has a TG of 18 to 35 years, clocks 36 per cent of its revenue from north India, 30 per cent from south India, 20 per cent from west India, and the remaining 14 per cent from east India.
Being a digital-first brand, 70 per cent of the revenue of the brand comes from marketpalces and the rest 30 per cent is equally divided between offline and D2C.
“Till two years back, 75-80 per cent of the revenue was coming from metros and tier I cities but post-covid, the majority of the growth now is happening in tier II and tier III cities. So today, 48 per cent of the total revenue is contributed by tier II and tier III cities and the remaining 52 per cent comes from metro and tier I cities,” he elaborated.
Currently, the ethnic wear brand is offering 4,000 SKUs. It launches 70-75 new options per week, and from next year onwards the target is to launch more than 100 options per week, which translates to about like 400-500 options a month.
Libas, which aspires to be a global fast fashion brand, forayed into international waters in July via online channels. It has a presence in countries like the US, UK, Australia and UAE.
“Currently, we have no plans to expand our offline presence internationally,” he said.
The brand is expecting less than 1 per cent revenue – Rs 15-20 crore – from the international markets during the first year of operations.
“Last fiscal year, our EBITDA stood at 8 per cent, and this fiscal year, we are targeting it at around 12-14 per cent,” he said.
The GMV of the brand for the last fiscal stood at Rs 750 crore and for this fiscal, it is aiming at Rs 1,100 crore.
For FY 2023, the net revenue of the brand was Rs 425 crore, and is looking to clock a net revenue of Rs 700 crore in FY 2024.
By FY 2025, Libas aims to cross the Rs 1,000 crore revenue mark.
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