Styched Strides into the Footwear Market with the Acquisition of Flatheads, Expanding its Product OfferingsStyched Strides into the Footwear Market with the Acquisition of Flatheads, Expanding its Product Offerings.
Bengaluru-based online youth fashion brand Styched marked its first acquisition with Flatheads, a Direct-to-Customer (D2C) online casual sneaker startup that gained fame on Shark Tank India Season 2.
The acquisition, structured as an all-equity transaction deal, marks Styched’s entry into the footwear segment, solidifying its position as an industry leader. This strategic move opens up new avenues for both brands and promises exciting opportunities for growth and expansion in the dynamic Indian fashion market.
Established in 2019, Styched was founded by fashion enthusiasts Soumajit Bhowmik, Durga Madhab Dash and Joseph Sony. With firm control over production, they bring their expertise as graduates from prestigious institutions like IIT Kharagpur and the Indian School of Business.
Styched is known for its on-demand, zero-wastage model in fashion apparel. The brand collaborates with 600 tailors who pick up pre-cut fabric and stitch it. The company primarily serves Tier II to Tier VI markets, distinguishing itself from the fashion landscape in India, where 85% of revenue originates from the top 10 cities. However, for Styched, this segment contributes only 15% of its revenue.
Founded in 2018 by Ganesh Balakrishnan and Utkarsh Biradar, Flatheads is an innovative D2C brand that designs all-day wear casual sneakers for the urban audience. What sets Flatheads apart is its introduction of bamboo fiber shoes, catering to the unique needs of the tropical Indian climate. The brand has garnered support from We Founder Circle, LetsVenture, and angel investors, among others, reflecting its potential for success in the market.
The Styched-Flatheads Deal
The acquisition of Flatheads provides Styched with a strategic opportunity to venture into sneakers and diversify its product offerings.
Soumajit Bhoumik, CEO at Styched, expressed enthusiasm for the acquisition, stating, “The acquisition opportunity came to us through a common investor, and we felt it would be a perfect deal for us considering we wanted to launch sneakers in a big way within Styched as well. The technical know-how of Flatheads would really help us create a wide range of affordable sneakers collections. So, while Styched will continue to play in the sub-1000 INR Segment, the semi-premium segment would have Flatheads as a flagship brand”.
Initially, Flatheads will continue offering its existing range of products, while all departments will be operated and managed by Styched.
“The Flatheads-Styched deal gives new wings to our idea of creating unique footwear for the young Indian. Styched has changed the operating model of creating and delivering fashion, and I’m very excited to see Flatheads taking the next leap together. Young Indians are just starting to flaunt their sneakers as a new fashion and lifestyle statement. The market is evolving and will be a unique journey for the category, different from other parts of the world. It will be fulfilling to see Flatheads being an integral part of the market creation and growth,” said Ganesh Balakrishnan, Co-Founder of Flatheads.
Styched plans an aggressive hiring phase following this development to strengthen the footwear department. Leveraging its production-on-demand technology, Styched aims to expand Flatheads’ existing collection and enhance customer choices seamlessly.
To expand its reach, Styched recently partnered with a mall chain, opening kiosks in specific localities in India. Additionally, Styched has experienced significant success in the UAE, generating a monthly Gross Merchandise Value (GMV) of INR 75 lakh from sales targeting the expat population. Through its app and website in India, Styched achieved a monthly GMV of INR 3.5 crore for FY24.
Focusing on Tier II to Tier VI markets globally, the brand will also scale its revenues in South East Asian countries. The brand plans to enter the Indonesian market later this year. Styched has raised $721,000 (5, 89, 91,715 INR) through angel and seed rounds in three equity fundraising events to fuel its growth and development.
While Styched will continue to focus on affordable sneakers, Flatheads will take the lead as the flagship brand in the semi-premium segment. Furthermore, Styched plans to take the Flatheads brand international.
The acquisition will strengthen Styched’s position as an emerging industry leader and demonstrate its commitment to embracing innovation and diversifying its product range in the rapidly evolving fashion landscape.
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