The Souled Store Secures $16.4M in Series C Funding Round
- ByStartupStory | March 29, 2023
The Souled Store, a lifestyle and fan merchandise startup based in Mumbai, has secured a Series C funding of Rs 135 crore ($16.4 million) led by Xponentia Capital Partners, alongside returning investors Elevation Capital and RPSG Capital. Xponentia Capital’s investment in the consumer sector is its biggest to date. The startup intends to utilize the funds to diversify into new sectors and plans to launch more than 100 stores throughout India over the next two years.
The Souled Store, a Mumbai-based lifestyle and fan merchandise startup, has announced that it will be offering a 100% buyback of vested employee shares under its Employee Stock Ownership Plan (ESOP) program. Co-founder Vedang Patel stated that the company plans to make ESOP buybacks a regular practice and has been discerning in its allotment of ESOPs.
According to data platform Tracxn, as of May 2022, The Souled Store had allocated 3.7% of its shares to its ESOP plan with an unrealized value of Rs 29.7 crore. The Mumbai-based lifestyle and fan merchandise startup currently operates 12 stores across five cities, catering to 18-32-year-olds with its fan merchandise apparel and offerings in sneakers and kidswear. Co-founder Vedang Patel stated that eight of the 12 stores were opened in the previous year, and that the company’s stores typically recover their capex within two to three months. The Souled Store has stores in Bengaluru, Pune, Gurugram, Mumbai, and Indore.
Vedang Patel, co-founder of The Souled Store, stated that the idea for the startup’s first offline store in Mumbai came from the realization that outdoor billboard advertising costs in Bandra were comparable to renting out a physical store. The Souled Store was established in 2013 by Patel, Rohin Samtaney, Aditya Sharma, and Harsh Lal, and has raised nearly $13.1 million in funding to date, according to Tracxn data. Actor Sara Ali Khan, who invested in the startup in March 2022, is also its brand ambassador.
Xponentia Capital’s Managing Partner, PR Srinivasan, stated that The Souled Store has created a unique brand and is in the process of establishing a large community that identifies and relates to its casual wear products. Srinivasan expressed his excitement at supporting Vedang Patel and his team as they continue to innovate and delight customers. The Souled Store claims that nearly 70% of its orders are placed through its own website, with 15% coming from other online marketplaces and the remainder from its physical stores.
According to co-founder Vedang Patel, the company has established a loyal customer base, with repeat rates as high as 90% within six months, distinguishing it from most direct-to-consumer brands that rely heavily on online marketplaces for nearly 80% of their orders. The Souled Store, headquartered in Mumbai, claims to have an annualised revenue of Rs 450 crore in terms of Gross Merchandise Value, indicating the total value of goods sold by an online platform over a period of time. According to Tracxn, the startup recorded losses of $2.8 million in fiscal 2021. The company competes with Nodwin Gaming-owned Planet SuperHeroes and other similar businesses in the market.
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