High Street Essentials, the parent company of FabAlley and Indya, experienced sluggish growth in the previous fiscal year ending March 2023. However, the Noida-based company also maintained flat losses during the same period.
According to the annual financial statements filed with the Registrar of Companies, High Street Essentials saw a 17.8% increase in revenue from operations, reaching Rs 185 crore in FY23 from Rs 157 crore in FY22.
Established in 2012 by Shivani Poddar and Tanvi Malik, High Street Essentials operates two women-focused brands – Indya, specializing in ethnic clothing and accessories, and FabAlley, catering to women’s Western apparel and loungewear needs.
The company claims to operate more than 30 stores across the country, with apparel sales constituting 77% of total operating revenue, increasing by 12.7% to Rs 142 crore in FY23. The remaining income comes from agency commissions, rising by 38.7% to Rs 43 crore in FY23.
For the fashion brand, the cost of material consumption accounted for 27% of overall expenditure, increasing by 6.8% to Rs 63 crore in FY23. Advertising and selling costs witnessed a growth of 30.8% during the same period.
Other expenses such as employee benefits, legal and professional fees, freight, and logistics contributed to the overall expenditure rising to Rs 235 crore in FY23 from Rs 206 crore in FY22.
Despite maintaining flat revenue and costs, the company’s losses remained unchanged at Rs 45 crore in FY23. Its Return on Capital Employed (ROCE) and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin were recorded at -247% and -14.2%, respectively, with the company spending Rs 1.27 to earn a rupee in FY23.
High Street has raised Rs 180 crore to date and holds a valuation of Rs 700 crore. According to TheKredible, a startup data intelligence platform, Elevation Capital is the largest shareholder with a 28.18% stake, followed by India Quotient. Co-founders Tanvi Malik and Shivani Poddar collectively own 37.18% of the company.
