In a remarkable display of growth in the competitive D2C fashion space, Chennai-based Snitch has reported a stellar financial performance for FY24, with its revenue surging 127.89% to reach INR 243 crore. The men’s fashion brand has successfully maintained its profitability, with net profits climbing 1.3X to INR 4.4 crore from INR 3.1 crore in the previous fiscal year.
The impressive financial results underscore Snitch’s successful transition from a purely offline retail brand to an omnichannel powerhouse in the men’s fashion segment. Founded in 2019 by Siddharth Dungarwal, the company has emerged as a significant player in Tamil Nadu’s burgeoning startup ecosystem, demonstrating the potential for sustainable growth in the fashion e-commerce sector.
Despite substantial investments in expansion and marketing, Snitch has maintained healthy profit margins while scaling operations. The company’s total expenses increased 132.15% to INR 236.1 crore in FY24, reflecting its aggressive growth strategy and investments in key business areas.
Speaking about the company’s performance, Founder Siddharth Dungarwal attributes the success to strategic technological investments and data-driven decision-making. “Our revenue growth in FY24 was fuelled by robust enhancements in our supply chain, supported by deeper investments in data-driven demand forecasting and AI-powered decision-making,” he told StartNet. “The focus on profitable growth in online marketplaces and our strategic push for iOS and Android apps were key drivers of success.”
The startup’s digital transformation has been particularly noteworthy, with online sales now accounting for 70% of total revenue. This shift represents a significant evolution from its origins as an offline retail brand, demonstrating successful adaptation to changing market dynamics in the post-pandemic era.
Marketing and expansion efforts have played a crucial role in the company’s growth trajectory. Advertising and promotional expenses saw a 39.72% year-on-year increase to INR 35 crore in FY24, while marketplace charges stood at INR 12.7 crore – a new expense category reflecting the company’s expanded online presence.
Looking ahead
Snitch has outlined ambitious expansion plans for 2025. The company has already launched 34 offline stores in the past eight months and plans to add 10 more in January 2025 alone. “Our goal is to aggressively expand our offline footprint to 100 stores this year by adding over 65 new outlets,” Dungarwal revealed, projecting a 125% revenue increase in FY25.
The success of Snitch has broader implications for Tamil Nadu’s startup ecosystem, particularly in the D2C space. The company’s ability to secure significant funding, including an INR 110 crore Series A round co-led by SWC Global and IvyCap Ventures, demonstrates investor confidence in the region’s startup potential. Its appearance on Shark Tank India 2023, where it secured an all-shark deal of INR 1.5 crore, has further elevated the profile of Tamil Nadu’s startup community.
For the Tamil Nadu startup ecosystem, Snitch’s success story serves as a blueprint for other entrepreneurs, particularly in combining traditional retail with digital commerce. The company’s data-driven approach to expansion and focus on sustainable growth provides valuable lessons for emerging startups in the region.
