Styched, a direct-to-consumer (D2C) fashion and lifestyle brand, was founded with a clear mission: to democratise fashion by making trendy apparel affordable for everyone, according to Soumajit Bhowmik, Co-founder and CEO, Styched.
The Unique Selling Proposition (USP) of Styched is its patented production-on-demand (POD) technology, which allows the brand to offer 1,000-2,000 designs on its website every week. This innovative approach allows Styched to operate with zero inventory, zero warehouse needs and zero waste.
Styched has created a system akin to Uber, but for tailors. The mobile application lists available jobs based on received orders, allowing any tailor in need of work to select tasks that interest them. Subscribers are paid immediately upon completion of their tasks.
The company provides tailors with ready-to-stitch fabrics, cut using Styched’s on-demand technology. A key feature of the app is that it does not require tailors to commit exclusively to Styched; they are free to take on tasks from other vendors while still receiving guaranteed orders from Styched.
Soumajit mentioned that when the brand onboards tailors, it assesses their eagerness and desire to work and learn. Each tailor undergoes a mandatory 7-day training and examination process to ensure their quality and speed meet the brand’s expectations. Many tailors who initially fail the examination practice, return to successfully clear it within 2-3 months.
By acquiring D2C brands, Styched is tapping into India’s fast fashion market, valued at US $ 9.90 billion in 2023 and projected to reach US $ 28.84 billion by 2030. Last year, Styched acquired Zymrat, a D2C casual sneaker start-up, in an all-equity deal. While exact financial details remain undisclosed, Zymrat, at the time of acquisition, reported an impressive Annual Recurring Revenue (ARR) of US $ 1 million. This strategic move marks Styched’s second acquisition, following its earlier success with Flatheads, which gained recognition on Shark Tank India Season 2.
With a monthly revenue of US $ 550,000, the brand is also expanding its reach into new international markets, beginning with the UAE and plans to further extend its footprint into Indonesia. During an informal conversation with Apparel Resources, Soumajit discussed funding strategies, sourcing approaches, the future of the D2C market in India and many more.
AR: You have raised a total of US $ 721,000 through angel and seed rounds. What advice would you give to fashion start-ups experiencing a notable decrease in funding?
SB: Funds are available in the market, but investors and VCs have become more cautious about investing in start-ups without a clear path to exit. I believe brands should not bother about the standard norms of fundraising – raising from a Tier A VC, or raising in one shot and then waiting before the next round, or not keep raising from Angels, etc. Brands need money, and more often than not, VCs will not be of any business help other than capital infusion. We have seen multiple examples of premier VCs not reinvesting in their portfolio over the last few years. Therefore, as a Founder, create channels to accept funds, no matter who the investor is and remember as a Founder you are always fundraising. Even when you are not raising funds, you are still fundraising.
AR: Are you planning to raise more funds? If yes, please outline the details.
SB: We have just opened up our Bridge Round before Series A and are raising US $ 2 million. The fund would primarily be used for growing Stych.ai, our PaaS platform which is being offered to other fashion brands. Through Stych.ai, we wish to extend our patented POD tech to other fashion brands. Around 95 per cent of fashion brands fail because of issues such as unsold inventory, huge upfront capital investment and unsustainable production processes.
Our platform serves as the operational backbone for brands and allows them to move to a zero inventory zero warehouse model. This means no more dead stock, limited styles and huge upfront costs for inventory! Brands get orders and we manufacture and fulfil on their behalf.
AR: Take us through key factors or strategies you consider when acquiring a brand.
SB: When evaluating acquisition opportunities, we prioritise three key factors. Firstly, given Styched’s longstanding emphasis on performance marketing, we tend to gravitate towards brands with strong brand recall. Additionally, we place significant emphasis on identifying complementary offerings. We also evaluate whether the brand aligns with our Just in Time philosophy. Lastly, we place a high value on cultural fit, especially concerning acquihire scenarios (to acquire a company in order to use its employees’ skills or knowledge, rather than for its products or services).
AR: How does Styched stay updated on the latest trends and translate them into apparel brand’s product offerings?
SB: At Styched, we stay updated on the latest fashion trends both globally and in India by continuously monitoring fashion movements and industry insights as well as trend forecasting by WGSN. Our backend system utilises advanced AI to deconstruct every piece of apparel into basic pattern blocks through a mathematical equation. This approach forms the backbone of our POD model, enabling us to efficiently and accurately produce garments on demand with a quick turnaround of just 48-72 hours.
We also incorporate various innovations into our design processes. For example, we launched a ‘Transform’ collection wherein the same apparel can be worn as a dress, bottom, top with minor adjustments. All our photoshoots are done digitally through use of AI tools and Photoshop.
We actively seek and value feedback from our customers, using their suggestions to enhance or modify our styles. For instance, one of our top sellers in 2023, the piped cargo jogger, originated from a customer’s suggestion. This customer-centric approach ensures that our products not only reflect the latest trends but also meet the preferences and needs of our target audience: men and women aged 18-27, primarily from Tier-2 to Tier-6 cities and towns.
Womenswear contributes to about 70 per cent of revenues while menswear contributes to the remaining 30 per cent. Our top selling categories are tops, dresses and womens’ bottomwear.
AR: How does your brand generate awareness amongst your customers?
SB: Close to 15 per cent of our budget is allocated to marketing activities. Our brand generates awareness among clients primarily through a robust online presence and strategic marketing efforts. We utilise performance marketing campaigns across various online channels, including Google, YouTube, Facebook and Instagram. These platforms help us reach a broad audience and engage potential customers effectively.
In addition to our online strategies, we supplement our efforts with offline activations such as college events. These events allow us to connect with our target demographic directly and build a strong community around our brand. Our campus ambassador program is a key part of this approach, with over 1,000 students actively promoting Styched on their campuses and social networks.
Moreover, our merchandise vertical, Styched Life, collaborates with prominent partners such as PETA India, music bands like Parikrama and various celebrities. These partnerships help us reach new audiences and enhance our brand visibility. Approximately 80 per cent of our orders originate from Tier-2, Tier-3 and Tier-4 markets, representing areas of significant growth potential. These regions receive our utmost focus and attention.
AR: How have you incorporated sustainability into your operations?
SB: All our suppliers are GOTS certified. In terms of production, we work on a zero inventory, zero wastage, zero warehouse model which ensures minimal wastage and maximum efficiency. We save on the standard 25 per cent unsold inventory that other fashion brands globally incur, as well as save on the 15 per cent of standard fabric wastage that all other brands face.
AR: In the next five years, how do you see the market for D2C fashion brands in India?
SB: The market for D2C fashion brands in India is poised for substantial growth over the next five years, driven by various factors and emerging trends. Firstly, the Indian D2C e-commerce sector is poised for substantial growth, fuelled by increasing internet penetration and smartphone usage. Projections indicate a robust compound annual growth rate (CAGR) of approximately 33.2 per cent by 2029. Similarly, there’s a noticeable shift in consumer behaviour, particularly amongst women and younger demographics, who increasingly favour online shopping. This demographic transition opens doors for niche and customised fashion products tailored to specific preferences.
Moreover, the adoption of digital platforms has made the D2C model more accessible and attractive. Brands are leveraging advanced technologies for enhanced customer experiences, such as personalised recommendations and augmented reality for virtual try-ons. Additionally, established companies are increasingly acquiring D2C brands to expand their digital footprint. Partnerships with logistics providers are enhancing the delivery capabilities of D2C brands, meeting customer expectations for quick and reliable service.
There’s also a growing demand for sustainable and ethically produced fashion. D2C brands are focusing on eco-friendly materials and transparent supply chains to cater to this conscious consumer segment.
