Cofounder Vedang Patel says the Souled Store still makes 90% of its revenue from direct-to-consumer sales after 10 years.

SUMMARY

• D2C accounts for over 90% of our sales, with marketplaces accounting for roughly 10%. Patel

• According to Patel, companies should sell items at uniform rates on marketplaces and from a long-term perspective.

• Earlier this year, The Souled Store secured INR 135 crore in a strategic fundraising round headed by Xponentia Capital.

Even after a decade, lifestyle direct-to-consumer company The Souled StoreVedang Patel, cofounder and director of Souled Store Datalabs, stated at a conference that the D2C channel continues to provide 90% of the company's income.

"I think if your product is aspirational, then marketplaces become a little bit different as you don't want people to say that they have shopped on marketplaces like Amazon but you want them to say that they have bought this on The Souled Store," words by Patel.

After developing its brand awareness through direct-to-consumer (D2C), the firm is now expanding into marketplaces, which provide the next possibility for development.

According to Patel, companies should sell items at consistent rates on marketplaces and across time.

Founded in 2013 by Patel, Rohin Samtaney, Aditya Sharma, and Harsh Lal, The Souled Store began as a branded product apparel firm before evolving into its present D2C casual wear brand form. It also distributes backpacks, sneakers, shoes, and socks to consumers ranging from children to older folks.

Earlier this year, The Souled Store secured INR 135 crore in a strategic investment round headed by Xponentia Capital. Elevation Capital and RPSG Capital, the company's current investors, also participated in the funding round.

Despite nearly tripling its operational income, the firm lost INR 26.72 crore in FY22, a significant drop from a net profit of INR 51.27 lakh the previous year. This occurred at a negative EBITDA margin of 10%, Patel stated in a recent discussion.

According to statistics, omnichannel and D2C businesses garnered $1.7 billion in investment in 2022, becoming the most financed sub-sector within the greater ecommerce market.

The entire addressable market opportunity for the domestic D2C sector is estimated to exceed $300 billion by 2030.
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