The revenue of BeYoung has grown by 3x, with annual revenue of INR 150 crores, and now the company is aiming towards having INR 500 crores in ARR by the year 2026. The brand has been growing exponentially in matters of their revenue. The major reason behind this is that the brand was able to raise funds with the help of Klub, as they had easy access to the repetition of the rounds.
Klub is one of India’s leading revenue-based financing platforms. They have announced that they will fund BeYoung, an e-commerce fashion brand with products accessible to both men and women. The company has sanctioned a capital of INR 40 crores to BeYoung.
This capital will be used for the rapid expansion of the brand BeYoung by opening 100+ offline stores in tier 2 and 3 cities across the country by 2023. The brand BeYoung started in the year of 2018. The main idea behind creating the brand came from 4 highly creative souls, and their main purpose for this brand was to create an e-commerce brand that would represent the fashion of the common people.
The creators of BeYoung wanted to create a brand that made fashionable clothes and accessories with a distinctive look and out-of-the-box designs. All of their products come from a very trendy product range. As the company is, bootstrapped, it aims to target its customer base from a fashion space where people prefer affordable and everyday fashion. This their clothing products start from INR 250.
The founder and CEO of BeYoung, Shivani Soni, stated that the clothing industry in India is huge. Still, there is a stereotype in the industry that products that have better quality are usually expensive. With BeYoung, they work on challenging such stereotypes; thus, they have created a wide range of clothes that belong to the range of mass-affordable clothing, which is also accessible to smaller cities.
They have also experienced exponential revenue growth after fundraising with Klun, as they got easy access to repeat rounds. This helped the brand experiment with the growth of its business while achieving success.
BeYoung was able to raise capital through the platform of Klub as it pushed its marketing efforts, especially during the onset of the festive season in the country. As the company has raised the first round of its capital from Klub, the monthly recurring revenue of BeYoung has grown 3x, with annual revenue of INR 150 crores.
As e-commerce in India is said to reach up to $200 billion by the year 2026, the fashion industry is also experiencing a surge when it comes to online retail, and it is also accounting for over 35% of the total fashion sales in India.
The trend will continue with a CAGR of 22% for online fashion retail in the next five years. Klun is also thrilled to provide capital to a brand like BeYoung as it is quite vibrant in its segment and enables them to invest in marketing, logistics, and technology. With the enhancement in consumer choices, innovation has had some great outcomes.