IPO-sure Go Fashion, acknowledged for its logo Go Colors, with an intention to turn out to be the lowest put on vacation spot for girls throughout the u . s . a ., plans to release approximately 2000 extraordinary logo retailers withinside the u . s . a . withinside the six-seven years. The agency presently operates approximately 459 Exclusive Brand Outlet(EBO) withinside the u . s . a ., which contributed approximately sixty nine percentage of its sales withinside the monetary 12 months 2021.

“We might be following a cluster-primarily based totally growth version for keep growth and might be establishing new shops withinside the location of present shops so there’s higher logo recall,” stated Gautam Saraogi, founder and CEO, Go Fashion. “We have already diagnosed tier III, IV, and V towns in which we’re doing nicely via our presence is big shops codecs and might be establishing new shops,” he added.

The agency is likewise going to undertake an omnichannel method henceforth, given the web push because of the pandemic and might be allowing all its shops for on line deliveries additionally to neighbourhood areas.

Go Fashion plans to release its preliminary public supplying from November 17-22. The agency is seeking to boost Rs 1,013.6 crore via the general public difficulty, with the intention to include a clean difficulty of Rs a hundred twenty five crore and a proposal on the market of Rs 888.6 crore. Its promoters PKS Family Trust, VKS Family Trust and shareholders Sequoia Capital India Investments IV, India Advantage Fund S4 I, and Dynamic India Fund S4 US I might be promoting their shares.

The agency plans to roll out a hundred and twenty greater EBOs with the investment proceeds from the IPO. Go Fashion, stated its founder, invests approximately Rs 23 lakh (Rs 18 lakh capital expenditure and Rs five lakh of deposits) in putting in place a shop.“We are capable of get better our investments in a shop inside 1.five-2 years on an average,” he added.

The style story

Founded through Gautam Saraogi and Prakash Saraogi in 2011, the Chennai-primarily based totally agency ambitions to cope with the want hole for ‘backside put on’ as girls purchasers transition from sporting sarees to kurtas, salwar kameez and western attire.

“We have been withinside the garment export commercial enterprise for greater than many years and in 2010-2011, we determined to task into the retail space. At that time, there has been a large transition taking place withinside the girls’s put on marketplace. Women purchasers had been transferring from sarees to -piece attire,” acknowledged Saraogi.

“While analyzing this marketplace, we realised that even as numerous corporations had been catering to the pinnacle put on marketplace, the lowest put on marketplace turned into much less aggressive and for this reason we determined to enter,” he adds.

The agency withinside the preliminary days of its adventure focussed on promoting via kiosks and installation its first kiosk in Chennai in 2011 and after receiving an awesome reaction, delivered greater kiosks. In 2014, the agency turned into promoting backside put on along with leggings out of eighty kiosks. However, it quickly realised the version turned into unsustainable after achieving a positive scale, and additionally that trial rooms had been critical for this product class. Hence, the agency delivered its first keep in 2014.

“The purchaser reaction turned into excellent and we tripled our income in comparison to kiosks,” stated Saraogi.

The founder duo then focussed on increasing its EBO’s in addition to its presence in multi-logo retailers and for this, it raised approximately Rs 60 crore from Sequoia Capital and Rs a hundred crore from ICICI Ventures.

Financials and manner forward

Go Fashion, in step with its DRHP, clocked a sales of Rs 250.6 crore in FY21, a 36.06 percentage decline from Rs 392 crore registered in FY20. According to the agency, the dip in its sales turned into majorly because of the effect of the COVID-19 pandemic on footfalls. It closed approximately 26 shops in FY21 because of the effect of the pandemic. The agency had recorded a income of Rs 52.6 crore in FY20 in comparison to a lack of Rs 3.five crore in FY21 because of the pandemic.

“The sale of merchandise reduced through 35.ninety nine percentage from Rs 390.6 crore in economic 2020 to Rs 250 crore in Fiscal 2021, basically pushed through the effect of COVID- 19 and the transient closure of some of our shops because of lockdown-associated regulations on our commercial enterprise operations,” Go Fashions India stated in its DRHP.

However, the agency’s sale of merchandise extended through 199.ninety five percentage from Rs 10.2 crore withinside the 3 months ended June 30, 2020 to Rs 30.eight crore in 3 months June 30, 2021, it stated.

The agency has set its sight at the Rs 4000 crore branded bottoms put on marketplace and goes to recognition at the class withinside the 12 months ahead.

“According to a document through Technopak, the branded addressable marketplace in India is envisioned to be Rs 4000 crore, of which we’ve an eight percentage proportion,” stated Saraogi.

“We see huge boom ability on this section and plan to paste to it as our addressable marketplace goes to make bigger to Rs 11,000 crore through 2025, even as we additionally growth our proportion in it,” he added.