Leading footwear company, Inc.5 Shoes, has recently announced its inaugural institutional investment of $10 million (approximately Rs 83 crore). Carpediem Capital, a well-regarded venture firm in Mumbai, spearheaded this round of funding. Alongside them, Param Capital and P3 Venture Fund also marked their contributions.
Keeping details close to its chest, the brand hasn’t divulged the valuation at which this funding was secured. Inc.5, headquartered in Mumbai, has made significant strides in the footwear industry, offering a variety of products spanning across different genders and price points. The brand’s impressive footprint includes 74 standalone stores, supplemented by a presence in 200 other retail outlets and a noticeable online market share.
Online sales constitute around 14% of the brand’s total revenue. A sizable 40% of this online figure streams directly from Inc.5’s official web portal, while partnerships with online giants like Myntra and Ajio contribute the remaining 60%, as per insights shared by Amin Virji, the Managing Director of the firm.
As for the utilization of the newly acquired funds, Inc.5 is set on a path of aggressive expansion. They have set their sights on inaugurating a total of 100 stores by March 2024, with a subsequent annual addition of 40-50 stores. Moreover, warehousing capabilities are set to get a boost with an added space of over 25,000 square feet. The funds will also be channeled into exploring fresh product categories and amplifying the prowess of their senior leadership.
A brainchild of the Mumbai-based Virji family, Inc.5 was established in 1998. Since its inception, the brand has diversified with lines like the women-focused Inc.5, the luxury men’s range Atesbe, and the affordably priced men’s brand, Privo.
Before this fresh influx of capital, the Virji family held a commanding 95.6% stake in the company. Amin Virji, with a 46.9% share, was the largest individual stakeholder. Post this investment, Carpediem Capital is slated to occupy two board seats, augmenting the existing governance setup where the Virji family holds four seats and Abdul Virji, Amin’s father, presides as the chairman.
Financial indicators for Inc.5 have been promising. In the fiscal year 2022-23, their revenue touched Rs 220 crore, accompanied by a healthy 15% EBITDA margin. Data from Tracxn further illustrates the brand’s positive trajectory, with a net profit of Rs 4.6 crore on Rs 133 crore revenue in the year 2021-22.
With its latest financial backing and a history of steady growth, the future looks bright for Inc.5 in the competitive footwear market.
