Direct-to-consumer pop culture apparel brand The Souled Store sustained its growth momentum in FY ’25, reporting a 37% rise in operating revenue, even as higher costs led to a moderation in profitability.
The company’s revenue from operations increased to Rs. 492 crore (US $ 54.12 million) in FY ’25 from Rs. 360 crore (US $ 39.60 million) in FY ’24. This followed an even stronger performance in FY ’24, when the brand had recorded revenue growth of more than 50%.
The Souled Store has raised approximately US $ 30 million in funding to date, including a US $ 16 million round led by Xponentia Capital in 2023 and a US $ 10 million investment led by Elevation Capital in 2021. Elevation Capital continues to be the company’s largest external shareholder, followed by Xponentia Capital.
Founded in 2014, The Souled Store designs, manufactures and retails pop culture-inspired merchandise across apparel and lifestyle categories. Over the years, it has expanded its portfolio to include footwear, accessories, stationery and collectibles, sold through both online channels and a growing offline retail presence.
Product sales across digital platforms and physical stores accounted for 98.5% of total income in FY ’25, rising 36.8% year on year to Rs. 485 crore (US $ 53.35 million). The balance came from membership fees.
On the cost side, procurement remained the largest expense, increasing 40.8% to Rs. 210 crore (US $ 23.10 million) as operations scaled. Employee benefit expenses amounted to Rs. 54 crore (US $ 5.94 million), while marketing expenditure rose to Rs. 57 crore (US $ 6.27 million). Other operating costs, including commissions, rentals, logistics and overheads, contributed to total expenditure rising 36% to Rs. 487 crore (US $ 53.57 million) in FY ’25 from Rs. 358 crore (US $ 39.38 million) a year earlier.
Despite robust topline growth, the rise in operating costs impacted the bottom line. Net profit fell 37.6% to Rs. 11 crore (US $ 1.21 million) in FY ’25, compared with Rs. 17.67 crore (US $ 1.94 million) in FY ’24. Nevertheless, the company remained profitable, reporting a return on capital employed of 7% and EBITDA margins of 9.7%, with spending of Rs. 0.99 to generate every rupee of operating revenue.
The results underline sustained consumer demand for pop culture and lifestyle merchandise in India, even as increased investment in marketing and operations continues to pressure short-term profitability.
