Inc.5 Shoes Secures $10 Million Maiden Institutional Funding Led by Carpediem Capital
- ByStartupStory | October 25, 2023
Inc.5 Shoes, the legacy footwear brand successfully raised its first-ever venture funding, amassing an impressive $10 million (approximately Rs 83 crore). The funding round was spearheaded by the Mumbai-based venture firm Carpediem Capital, with active participation from Param Capital and P3 Venture Fund. While specific details regarding the company’s valuation at the time of this funding round remain undisclosed, Inc.5 Shoes, a Mumbai-headquartered enterprise renowned for its diverse footwear offerings catering to all genders and price segments, stands poised for further growth and expansion.
Inc.5 Shoes, which currently boasts a network of 74 proprietary stores and distribution through 200 additional outlets as well as online channels, realizes a substantial portion of its sales through e-commerce avenues. Approximately 14% of its total sales are generated via online platforms, with a notable 40% stemming from its official website. The remainder is distributed through prominent online marketplaces such as Myntra and Ajio.
Amin Virji, the Managing Director of Inc.5, expressed the company’s intentions for the funds procured. The brand’s omnichannel retail strategy revolves around an extensive store and warehousing expansion, diversification into new product categories, and reinforcing its senior leadership. In the pipeline, Inc.5 aims to have 100 operational stores by March 2024, with the goal of subsequently adding 40 to 50 stores annually. The company is also keen on augmenting its warehousing capabilities by over 25,000 square feet, among other strategic initiatives.
Founded in 1998 and owned by the Mumbai-based Virji family, Inc.5 oversees multiple brands, including the women’s footwear-focused Inc.5, the premium men’s footwear label Atesbe, and the mid-range men’s shoe brand Privo. Prior to the investment, the family maintained a controlling interest of 95.6% in the company, with Amin Virji being the largest individual shareholder, holding 46.9% of the shares. The family additionally holds four board seats, with Amin’s father, Abdul Virji, serving as the Chairman. Following the investment, Carpediem Capital is set to hold two board seats.
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Although specific financial details of the funding round are not disclosed, Inc.5 Shoes reported a revenue of Rs 220 crore in the fiscal year 2022-23, coupled with an impressive 15% EBITDA margin. In the preceding fiscal year 2021-22, the company achieved a net profit of Rs 4.6 crore on revenues amounting to Rs 133 crore, based on data from Tracxn. This successful funding initiative positions Inc.5 Shoes to embark on a path of strategic expansion and further market presence in the thriving footwear industry.
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