Omnichannel fast fashion brand Berrylush, which accounted Rs. 76.7 crore in net sales last fiscal year, aims to reach Rs. 100 crore by the end of the current fiscal year, according to co-founder and COO Alok Paul.
Operating for nearly six years, Berrylush was profitable during its first four years. However, its EBITDA dropped to -3.5 per cent in FY 22-23, improved to 1.4 per cent last fiscal year, and is targeting a 7 per cent EBITDA this year.
Presently, 75 per cent of the brand’s sales come from Berrylush, 22 per cent from Berrylush Curve, and 3 per cent from the newly launched Berrylush Bizwear. Paul shares, “The company, previously bootstrapped, is now seeking to raise Rs. 12 to 15 crore to transition from product-led to brand-led growth. This will involve diluting 10 per cent of equity to fund brand development, improve retention, hire talent, and enhance marketing.”
“Currently, we are focusing on two things – conversion rate optimisation, and retention strategies,” he further added.
The retention rate has increased from 26 per cent to 32 per cent, with a goal of reaching 45 per cent in two years. The conversion rate has improved from 1.4 per cent to 1.7 per cent, with plans to further increase it. The brand has relaunched its app on Android and iOS in partnership with Appbrew to enhance the shopping experience, aiming to triple traffic and reduce customer acquisition costs.
Paul further shares, “Currently, 15 per cent of sales come from our own channels, with the remaining 85 per cent from marketplaces like Myntra and Flipkart. Berrylush aims to raise its own channel sales contribution to 25 per cent within 24 months. “
The average order value (AOV) is Rs. 1,200, and the customer acquisition cost (CAC) is Rs. 395. Sales are primarily from Maharashtra, Karnataka, and Delhi/NCR, with additional contributions from Gujarat and West Bengal.
Berrylush operates six stores in New Delhi, Noida, Rohtak, Surat, Indore, and Hyderabad but does not plan to open additional stores this fiscal year. “Currently, one store is company-owned and operated, four are franchise-owned and company-operated, and one is franchise-owned and operated. Going forward, our brand also plans to focus on the FOFO model (franchise-owned, franchise-operated) for future expansion”, he shared.
