Zouk eyes Rs 1000 crore revenue in 4-5 years, doubles down on premium play and offline retail
New Delhi: Homegrown
vegan lifestyle brand
Zouk
is gearing up for its next phase of growth with a target of reaching Rs 1,000 crore in revenue in the next 4-5 years and eventually hit the bourses, a company's official said.
As of March 31, 2024, the company had reported an annual turnover of Rs 78.2 crore. However, it did not share the previous year's revenue figures.
Having established a strong digital-first presence
, Zouk is now turning its focus to exclusive brand outlets (EBOs), premium product launches, and a strategic global foray, co-founder and COO Pradeep Krishnakumar said in an interview with ETRetail.
'We've built a strong digital foundation, but we've always believed Zouk is a brand consumers want to touch and feel,' he said. 'That's where
offline retail
becomes critical.'
The company currently operates over 10 EBOs and plans to expand to reach 20 stores by the end of this year. The brand's offline footprint has primarily focused on cities like Mumbai, Pune, Delhi, Bangalore, Hyderabad, and tier 2 regions such as Indore, Jaipur, and Ahmedabad. 'Our expansion strategy includes entering more high-street locations and malls in non-metro cities, which are showing promising traction,' he shared.
Talking about the brand's hero product, Krishnakumar said, "Our office bags continue to be the hero product. It's that sweet spot where style meets utility, and Indian women relate to it deeply."
He added that laptop sleeves and slings have also gained traction, while backpacks, introduced recently, are being tested for scale. 'We don't expand categories for the sake of it — we evaluate data, market gaps, and customer demand,' he said.
Premiumisation with purpose
When asked about its premium offerings, he said, 'Premium in India can't just mean gold zips and a higher price tag. Our customers are value-conscious — they expect better materials, smarter compartments, and more thoughtful design.'
The
Rhea Kapoor x Zouk collection
, launched earlier this year, represents this premium shift. The range has helped Zouk move into the higher price bracket while maintaining its vegan, cruelty-free promise.
Zouk had raised $14.8 million in funding from investors like Stellaris Venture Partners, Titan Capital and Aavishkaar Capital. While the company isn't profitable yet, Krishnakumar said it's running a capital-efficient model.
'We are close to profitability but this is a build phase for us. We're investing in brand, retail, and team — profitability will follow,' he said.
Offline retail is a big part of that build. 'We're not rushing into hundreds of stores. It's a phased rollout with a clear view on unit economics and brand visibility,' he added.
Zouk is also looking beyond India. The company is exploring select global markets, starting with the US, Europe, and the Middle East.
'We've had early conversations internationally and we plan to start some work this fiscal. But for now, India remains our primary focus,' Krishnakumar said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
9 minutes ago
- Economic Times
Deccan Gold Mines shares zoom 14% after Jonnagiri gold project receives consent to operate
Deccan Gold Mine announced that its associate, has received Consent to Operate (CTO) from the Andhra Pradesh Pollution Control Board. Deccan Gold Mines shares: In a regulatory filing, Deccan Gold Mines announced that Geomysore has received approval to begin operations at the Jonnagiri project—a key milestone following prior environmental clearances and public consultations. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Shares of Deccan Gold Mines surged 14.3% intraday on Thursday to hit a day's high of Rs 170.50 after the company announced that its associate firm, Geomysore Services (India), has received the Consent to Operate (CTO) from the Andhra Pradesh Pollution Control Board (APPCB) for its Jonnagiri Gold Project In a regulatory filing, Deccan Gold Mines stated that it has been informed by Geomysore about the approval, which marks a significant milestone in the development of the Jonnagiri project. The CTO allows Geomysore to initiate the operation phase of the gold project, following earlier environmental approvals and public CTO approval comes after the successful grant of Environmental Clearance by the Expert Appraisal Committee (EAC) of the Ministry of Environment, Forest and Climate Change (MoEFCC) during its meeting held on March 25, clearance pertains to the gold ore processing plant component of the project, and its official confirmation was published on the Ministry's portal on April 18, context to the development, a public consultation process for the project was conducted earlier in February, in Jonnagiri, Andhra Pradesh. Following this, Geomysore applied for the environmental clearance from the MoEFCC in line with the regulatory obtaining the clearance, the firm subsequently applied for the CTO from APPCB in April 2025, completing the final step required before the commencement of gold Jonnagiri project is among the first privately held gold mining initiatives in India to reach this advanced stage of regulatory approval. The company stated that it will continue to keep shareholders informed about future developments.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Mint
10 minutes ago
- Mint
Can this microfinance lender lead the industry's turnaround in FY26?
The microfinance industry remains a tough sector to navigate. While it offers higher interest spreads, rising defaults during economic slowdown make it a tricky business to be in. This vulnerability resurfaced once again as the post-pandemic credit boom lost momentum in FY25. Initially driven by low interest rates, credit growth began slowing as borrowing costs rose and economic activity weakened. This shift strained borrower repayment ability, increased asset quality stress, and severely hit profitability across the sector. To limit further damage, many lenders opted to write off bad loans and reset their books. The intent was to enter FY26 with a cleaner slate, as the industry looks ahead to a potential recovery. Also Read: Russia-Ukraine war escalation: Impact on the Indian stock market Spandana Sphoorty took a similar approach. In FY25, it wrote off loans worth ₹1,618 crore—a move that dented profits. However, with most of the clean-up now behind it, it is positioning itself for a turnaround in FY26. So, where does Spandana stand after this reset? AUM contracts Let's start with assets under management (AUM), which declined sharply by 43% year-on-year to ₹6,819 crore in FY25. Disbursements also fell 48% to ₹5,605 crore, as Spandana adopted a cautious lending stance. This is evident from the AUM per branch, which fell from ₹7.3 crore in March 2024 to ₹3.8 crore in March 2025. This conservative approach directly contributed to the drop in the overall loan book. The management said FY25 was one of the most challenging periods for the microfinance industry. Multiple headwinds—including higher borrower leverage, weakening of the Joint Liability Group model, deteriorating borrower discipline, and sociopolitical interference—forced lenders to tighten credit norms and proceed with greater caution. The impact of this is also visible in customer numbers, which fell from 3.3 million in March 2024 to about 2.5 million by March 2025. However, now the company remains confident of reviving growth in FY26. It plans to grow its AUM book by 20%, driven by a similar increase in disbursements, most of which is expected in the second half of FY26. The company now plans to lend to quality borrowers—who currently account for 51% of its borrower base as per internet lending regulations—to support the future growth. Asset quality worsens Not just AUM, but asset quality stress also increased—a trend often seen in times of stress in the microfinance industry. Spandana impairment cost—unrecoverable loans—rose from ₹259 crore (in FY24) to ₹1986 crore in FY25. Also Read: Analysts and investors have soured on Asian Paints. Can it prove them wrong? Gross non-performing assets (GNPA) increased by 4.1 percentage points to 5.6%, while net NPAs rose by 0.9 percentage points to 1.2%. On the positive side, Spandana continues to maintain a healthy provision coverage ratio of 80%. The management attributed much of the stress to elevated field-level attrition, which hurt operational efficiency and contributed to rising delinquencies. To strengthen collections, the company has now deployed around 700 loan officers, who will focus on recovery from 90+ day old loans and the write-off pool. Early recovery signs Despite a challenging year, Spandana is starting to see early signs of recovery. Gross collection efficiency declined from 94% in Q1 to 90.9% in Q4FY25. But the company highlighted an improving trend in net recovery from bad assets. Net collection efficiency for loans overdue by more than 90 days (called X-Bucket) improved from 96.4% (Nov-24) to 98.6% in March 2025. Interestingly, branches with a weekly repayment model reported even higher collection efficiency of 99.3% in March. As a result, Spandana now plans to scale up its weekly-model branches, which are showing better collection performance. The company believes improving collections to about 99% helps support profitability going forward. Recovery from 90+ day past-due accounts has also picked up meaningfully, rising from ₹11 crore in Q1FY25 to ₹52 crore in Q4 FY25. In total, Spandana recovered over ₹90 crore in the last fiscal. In FY26, the company expects a further recovery, aided by a dedicated team and the early arrival of the monsoon, which typically supports rural cash flows. Strict credit filters to address borrower leverage Lender overlap—the proportion of borrowers taking loans from three or more MFIs, including Spandana, has also shown signs of improvement. Lender overlap declined from 23% (Feb-25) to 20.3% in April 2025, indicating some relief on the leverage front. Also Read: These five private banks in India have the lowest NPAs. Should you invest? To tackle the issue further, Spandana has decided on stricter credit filters. It will now cease lending to borrowers with overdue loans exceeding 60 days with any regulated entity, where the loan amount exceeds ₹3,000. Additionally, it will also avoid lending to borrowers who have availed a loan in the past 12 months, effective June 2025. Profitability severely hit While green shoots are visible, elevated stress levels kept credit costs high, which impacted profitability in FY25. The company's total income declined by just 3% to ₹2,424 crore, indicating a relatively stable topline. Net interest income also fell by 5% to ₹1,228, as the net interest margin contracted by 1.3 percentage points to 12.8%. However, the bigger concern was on the operating front. Pre-provision operating profit dropped sharply by 35% to ₹608 crore, as the cost-to-income ratio rose to 60.6% from 43.5% in FY24. This situation was further aggravated by impairment, which rose from ₹259 crore (FY24) to ₹1,986 crore (including write-offs of ₹1,618) in FY25. As a result, the company moved from a profit of ₹501 crore in FY24 to a net loss of ₹1,035 crore in FY25. Needless to say, the return ratios—return on assets and return on equity—turned negative. Capital position stays strong Spandana's net worth declined from ₹3,707 crore to ₹2,633 crore due to the heavy loss in FY25. However, its capital adequacy remains well above regulatory norms, with a capital-to-risk-weighted assets ratio (CRAR) of 37.1% as of March 2025, well above the RBI's mandated 15%. Liquidity healthy; rights issue planned The company's liquidity position continues to offer comfort. It reported a cash balance of ₹2,030 crore as of March 2025, enough to meet short- and medium-term requirements. Additionally, shareholders approved a ₹750 crore capital raise in March 2025, and the company plans to raise further capital in Q2 FY26 via a rights issue, with promoter participation, which signals confidence in a potential turnaround. Valuation factors in stress Spandana's share price has declined 64% in the last one year, currently trading at ₹262. This correction has largely priced in many of the concerns, with the stock now valued at a price-to-book (P/B) multiple of 0.7x, significantly below its 10-year median P/B of 1.5x. Going forward, a sustained recovery in key metrics—particularly in asset quality, disbursement growth, and collection efficiency—will be crucial to re-rating, with most of this expected to unfold from the second half of FY26. Madhvendra has over seven years of experience in equity markets and has cleared the NISM-Series-XV: Research Analyst Certification Examination. He specialises in writing detailed research articles on listed Indian companies, sectoral trends, and macroeconomic developments. Disclosure: The writer does hold the stocks discussed in this article. The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
Time of India
12 minutes ago
- Time of India
Rapid Delivery's in Fashion at Ecomm, New-age Apparel Cos
HighlightsNew direct-to-consumer brand Snitch has launched a pilot project for its quick fashion delivery service in Bengaluru, joining other brands like Newme, Slikk, and ecommerce platforms such as Myntra, Ajio, and Nykaa in exploring ultra-fast delivery for fashion and apparel. Slikk, which offers delivery within 60 minutes, recently raised $10 million in funding led by Nexus Venture Partners, while Snitch has secured $40 million from 360 One Asset to expand its offline retail presence and enter the quick commerce segment. Industry experts caution that the rush towards rapid fashion delivery may be an overhyped extension of the quick commerce trend, noting that the supply chain for fashion is significantly more complex than that of grocery delivery. New-age brands like Newme, Slikk and Blipp, as well as ecommerce platforms such as Myntra, Ajio and Nykaa are all exploring ultra-fast delivery for fashion and apparel. The latest to join the race is Bengaluru-based D2C brand Snitch. Its founder Siddharth Dungarwal told ET that the company has launched a pilot project for its own quick fashion delivery service in Bengaluru last week. Seeing the rush, venture capitalists are betting on the segment. Slikk, which promises delivery within 60 minutes, recently raised $10 million (about Rs 85 crore) in a round led by Nexus Venture Partners. Snitch has raised as much as $40 million from 360 One Asset, with the proceeds to be used for expanding its offline retail presence to more than 100 stores by the end of 2025 and entering quick commerce. Some industry insiders believe this may be another overhyped extension of the quick commerce narrative. The model is new and comes with its own set of challenges. The push towards rapid delivery began with quick commerce platforms like Zepto, Swiggy Instamart and Blinkit expanding the categories of products they deliver. These platforms, which were initially focusing on grocery delivery, partnered with brands like Jockey, Manyavar, Puma and Adidas to offer apparel and accessories, although limited to essentials such as innerwear, socks, gym wear, basic tees and track pants. This opened up a gap for fashion-first players to offer broader selections with quick fulfilment. "Fashion is an experiential category. The supply chain required for fashion and lifestyle is far more complex than grocery," said Akshay Gulati, cofounder and chief executive of Slikk.
