New Delhi-based fashion retail chain, 1-India Family Mart is all set for the third round of fundraising. The company is in talks with private equity players for capital infusion, said Ravinder Singh, Founding Director, 1-IndiaFamilyMart.
In a freewheeling chat with Moneycontrol, Singh said, “We are now in the process of raising more funds and are already in discussion with multiple PE firms.”
However, he refrained from revealing more details about the fundraising.
Founded as a bootstrapped company, Nysaa Retail raised its first external funding of $7 million from Carpediem Advisors in 2018 after completing five years of operations.
In May 2019, the firm raised its second round of external debt funding of Rs 20 crore by a consortium led by APAC Financial Service for expanding in newer markets as well as for its working capital requirements.
Started in 2013 with the first store in Uttar Pradesh, 1-India Family Mart is operated by Nysaa Retail. It has 92 stores across 81 cities of eastern and northern India.
The company is planning to go public by listing it on the exchanges in the next two years. “We are trying to list 1-India Family Mart via an IPO (initial public offer) in 2021,” Singh said.
On omnichannel retailing, the founder said, “We are still in the pilot phase. It is only when we have tested the system, we can openly talk about it.”
Expansion plans
The company has witnessed an increasing demand and potential in Tier-2,3 and 4 cities. The company is planning to open 40 more stores by expanding to newer geographies. 1-India Family Mart aims to steer a store count of 125 by FY20 and over 350 stores in the next 5 years.
When asked if they are planning to venture into Mumbai, Singh said, “Venturing into the Mumbai market is currently not on the cards.”
Currently, the company is planning to expand the business to newer territories where there is growth potential. They are also evaluating newer regional markets within the states.
Performance, Outlook
In FY19, the company recorded a revenue jump of 71 percent compared to the previous year. In terms of value, the company had clocked a turnover of Rs 394 crore in FY19.
In FY20, the company is targeting a revenue worth Rs 700 crores and expects to touch Rs 2,300 crore in the next five years.
While it didn't share details, the company said it is profitable.
“This future growth will be dominated by various category performers through an omnichannel approach,” Singh said.
Speaking about the apparels that are faring well in Tier 3 and 4 cities, Singh said, “Since menswear and boys wear tend to centre on basics especially in Tier-3 and 4 cities, it is the ladies and kids category that are doing particularly well in our brand, considering their fashion-forward nature.”
Recently, 1-India Family Mart has made additions to their brand in the form of low-priced general merchandise items which is helping them to make ‘decent contribution’ to the overall business.
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