High Street Essentials Sees Modest Growth, Stable Losses in FY23

High Street Essentials, the company behind fashion brands FabAlley and Indya, experienced a slow but steady increase in revenue during the fiscal year ending March 2023. However, the Noida-based company managed to maintain its losses at the same level compared to the previous year.

According to annual financial statements filed with the Registrar of Companies, High Street Essentials’ revenue grew by 17.8%, reaching Rs 185 crore in FY23 from Rs 157 crore in FY22.

Indya and FabAlley are redefining women’s fashion in India

Founded in 2012 by Shivani Poddar and Tanvi Malik, High Street Essentials caters specifically to women’s fashion with two distinct brands: Indya focuses on ethnic wear and accessories, while FabAlley offers Western-style clothing and loungewear. The company boasts a network of over 30 stores across India.

Apparel sales, which make up the bulk of their business, mirrored the overall revenue growth with a 12.7% increase to Rs 142 crore in FY23. Agency commission, contributing the remaining revenue stream, saw a more significant rise of 38.7%, reaching Rs 43 crore in FY23.

Material procurement costs, representing 27% of the company’s total expenditure, also climbed slightly by 6.8% to Rs 63 crore in FY23. Advertising and selling expenses followed a similar trend, increasing by 30.8% during the previous fiscal year.

Increasing Spending Patterns

Employee benefits, legal and professional fees, along with freight and logistics costs, contributed to a rise in overall expenditure, pushing it to Rs 235 crore in FY23 compared to Rs 206 crore in FY22. A more detailed breakdown of these expenses can be found on TheKredible platform.

Despite the lack of significant expense reduction, High Street Essentials managed to keep its losses stable at Rs 45 crore for FY23. Key financial metrics like Return on Capital Employed (ROCE) and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin remained negative at -247% and -14.2%, respectively. This indicates that for every rupee earned, the company spends Rs 1.27.

High Street Essentials has secured Rs 180 crore in funding to date and boasts a valuation of Rs 700 crore. As per startup data platform TheKredible, Elevation Capital holds the largest shareholder stake at 28.18%, followed by India Quotient. The company’s co-founders, Tanvi Malik and Shivani Poddar, together hold a combined ownership of 37.18%.