Styched Acquires Shark Tank-Featured Sneaker Brand Flatheads
- ByStartupStory | July 17, 2023
Singapore-based direct-to-customer (D2C) fashion and lifestyle brand Styched has announced its acquisition of sneaker brand Flatheads, known for its appearance on Shark Tank India Season 2. The deal, involving a mix of cash and equity, will provide Flatheads with the necessary funds to support inventory, vendor debts, and other financial obligations. While the financial details of the transaction were not disclosed, market research platform Tracxn previously valued Flatheads at $3.53 million post-money as of May 2022. Flatheads, founded in 2018 by Ganesh Balakrishnan and Utkarsh Biradar, had previously secured investments from We Founder Circle, LetsVenture, and angel investors.
Under the acquisition agreement, Flatheads will continue retailing its products through its own website, while its mass-market offerings will be available on Styched’s platform. Soumajit Bhowmik, CEO of Styched, shared the brand’s expansion plans, stating, “For Flatheads, the higher-priced SKUs will be retailed on the Flatheads website, while the lower-priced SKUs will be featured on the Styched site. We also have plans to take the brand beyond India, as we have a larger target audience.” Bhowmik also revealed that Styched intends to acquire three more brands in the mass-premium segment, including an athleisure brand, in the coming months. Additionally, the company is in the process of closing a new funding round.
Founded in 2019 by Bhowmik and Durga Dash, Styched competes with well-known brands like SheIn, Club Factory, and Vishal Megamart, targeting value shoppers. While SheIn and Club Factory faced bans in India in June 2020, SheIn reportedly plans to re-enter the market through a collaboration with Reliance Retail. Bhowmik emphasized Styched’s unique approach, stating, “We are an on-demand and zero-wastage brand. We have zero inventory or warehousing. We don’t follow seasonal collections and upload new patterns and designs every week. We currently have 14,000 designs on our website.” He also highlighted the company’s patented technology and collaboration with 600 tailors, enabling a scalable on-demand production model.
Bhowmik further discussed Styched’s market reach, stating that the majority of its revenue comes from Tier II to Tier VI markets, rather than the top 10 cities that dominate the fashion landscape in India. The company has recently partnered with a chain of malls to establish kiosks in select localities and has reported significant sales in the UAE, primarily targeting the expat population. Styched’s monthly Gross Merchandise Value (GMV) reached Rs 75 lakh for its UAE sales and Rs 3.5 crore for its India operations through its app and website.
Styched is also gearing up to expand its presence in Indonesia later this year. In terms of funding, the company has raised a total of $721,000 through angel and seed rounds across three separate equity fundraising efforts.
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