SUMMARY
The Bengaluru-based startup will use the fresh capital to scale up its talent and technology, as well as to build an offline retail strategy
Snitch claims to have achieved a turnover of more than INR 100 Cr in FY23
Snitch has digital presence marked by over 2 Mn app downloads
Men’s direct-to-consumer (D2C) fashion brand Snitch has raised INR 110 Cr ($13.19 Mn) in a Series A funding round co-led by SWC Global and IvyCap Ventures.
The Bengaluru-based D2C brand will use the fresh capital to scale up its talent and technology, as well as to build an offline retail strategy.
With this infusion, IvyCap’s cofounder and managing partner Ashish Wadhwani will join the Snitch board.
Set up in January 2019 by Siddharth R Dungarwal, Snitch started its journey as an offline retail brand. A year later, Covid-19 changed the face of physical retail forever and so the brand pivoted to online sales.
“During the pandemic, we were stuck with extra inventory. It was a key reason why we moved online. We initially thought of leveraging marketplaces, but we also wanted our brand to gain recognition. That’s why we decided to launch our website,” said Dungarwal in an earlier interview with Inc42.
A majority of Snitch’s sales are generated through its website and app, complemented by a growing offline presence and partnerships with major online marketplaces.
Tuck Lye Koh, founding partner, SWC Global said, “Our decision to invest in Snitch is rooted in our belief in their visionary approach to fast fashion.”
Snitch claims to have achieved a turnover of more than INR 100 Cr in FY23 and aims to cross expectations of more than 100% growth in FY24. The brand is also set to expand further by opening more than 100 offline stores across India in the next 4-5 years.
According to an Inc42 report, the Indian D2C market is expected to reach $100 Bn by 2025. Out of all the sub-segments in the industry, apparel and footwear are estimated to account for nearly 77.6% of the online clothing market by 2025.
In the apparel sector, the men’s apparel sector is one of the burgeoning sub-sectors. According to a recent report by Market Research Future (MRFR), the global menswear market is expected to increase from $610.75 Bn in 2023 to $988.24 Bn by 2032, at a compound annual growth rate (CAGR) of 6.20% between 2023 and 2032.
In recent times, India’s male demographic has started focusing on quality as well as style thereby, making a purchasing shift towards high-quality clothes. Also, the shift towards online shopping has consequently increased the count of online shoppers in the country.
Some of the key plyers in the segment include XYXX, DaMENSCH, Chromozome, BlissClub, Freecultr, Bombay Shirt Company among others.
Snitch was also part of Inc42’s Fast 42 2022 Edition and scored 19th position in the list. In February 2023, the founders also presented the brand at Shark Tank and got an all-sharks deal raising INR 1.5 Cr from angel investors such as Aman Gupta (boAt), Namita Thapar (Emcure Pharmaceuticals), Anupam Mittal (Shaadi.com), Peyush Bansal (Lenskart) and Vineeta Singh (SUGAR)
