High Street Essentials | Information

Private and confidential Memorandum

HSE ‘House of Brands’ | By women, for women

“The Zara of Indian Ethnic “Western-wear designed for

Fashion” Indian women”

ETHNIC WEAR WESTERN WEAR

• First and only high street brand for
designer inspired ethnic wear
• Brings design differentiated,
affordable, organised retail to a
largely unorganised sector
• Specialises in interpreting western-
wear trends for Indian women’s
unique needs
• Heavy data-led designing & fastest
in country supply chain

INR 1,150 Mn+ 59% INR 780 Mn+ 41%

Current ARR1 Total revenue2 Current ARR1 Total revenue

Portfolio of high-growth and emerging brands growing across multiple women wear categories
Note: 1. H2FY22 Annualized; 2
The HSE Group | Key metrics at a glance

ARR1,2 Gross margin3

INR 1,940 Mn+ 62%

To reach INR 8,300+ Mn by Steadily improving from
FY26 54% in FY19

Online sales3 # of PoS

50%+ 410+
Mix of own app/website & Through EBOs and LFS
marketplaces

Customers New designs

5 Mn+ 1,200+
Across all channels Per season per brand

Source: Company Data; Note: 1. Basis H2 FY22; 2. Revenue net of discounts, returns & taxes; 3. For the period FY22; EBO – Exclusive Brand Outlets; LFS – Large Format Stores
3
 Journey so far to become the #1 D2C fashion platform

Raised angle funding Series A fund raise Started

Launched jewelry International
Series B fund raise & accessories as expansion
allied categories

2012………….…………..2016 2017 2018 2019 2020 2021

Founded in
2012
Launched on online Series B1 fund Shraddha Kapoor
marketplaces Forayed into offline raise from existing joined as Brand
through EBOs / LFS investors during Ambassador
Launched FabAlley
Launched ethnic covid
on D2C platform
wear brand

Note: 1. Q3 Annualized; EBO: Exclusive Brand Outlets; LFS: Large Format Stores 4
 Only D2C fashion house with full omni-channel distribution capabilities to
scale

Online Marketplaces Store-in-Stores (SIS)

Listed on leading Indian Network of 370+ SIS with

and International leading LFS platform across
marketplaces the country

Online marketplaces
23%
Own App / Website LFS Own brand stores
37%
D2C online platform with Network of 31 stores in
3.2+ mn monthly 15 cities across high
sessions App / visibility locations
Website
31% EBOs
% of Net Sales1 9%

Note: 1. For the period FY22 5

Rapid growth in sales & margins in the last 5 years despite covid disruptions

Net Revenue (INR Mn)1 Gross Margin %

1,944
62%
CAGR: 41% 1,570 59%
57%
1,252
54%
889 951
49%
527
280

FY17 FY18 FY19 FY20 FY21 FY22 Current FY18 FY19 FY20 FY21 FY22
Covid impact ARR

Key Operating Metrics

150k+ 410+ 30 49% 3.1x

Monthly pieces sold Total point of sales NWC Days2 Repeat orders3 LTV/CAC4

Source: Company data; Notes: 1. Revenue numbers prior to FY22 vary by 10% as FY22 onwards company has started to recognize revenue from LFS channel at the time of sale to the
end customer only as per accounting standard AS115; 2. For H2 FY22; 3. In own website/app channel; 4. Customer Long-term Value / Customer Acquisition Cost is 3.1x by 3rd year; 6
Investment
Thesis
HSE | India’s largest D2C fashion house for women

1 Strong portfolio of brands with deep consumer engagement

2 Extensive omni-channel distribution network with a 50:50 online/offline mix

3 Codified and data-driven design philosophy

4 Agile and nimble supply chain

5 Led by an experienced and passionate management team

8
 Indya | Bringing luxury to the masses
Strong brand portfolio Omni-channel distribution Data-driven design philosophy Nimble supply chain Superior execution

Indya is giving customers an honest, transparent & innovative product experience they didn’t know existed in modern retail until they were introduced to it

Reinviting the ethnic wear category Superior buying experience

• Creating a high street for Indian designer • Mix and match or buy a single piece
wear, currently occupied by unorganized • Differentiated and trend centric approach
boutiques
• Add utility and comfort along with style like
• Democratising designer fashion by pre-stitched saris / attached dupattas to
launching seasonal collaborative bridge lines eliminate the fuss of pinning & draping

Translating into exceptional performance

FY22 Sales Gross Margin%1 AOV (EBOs)1,2 Average MRP

~INR 920 mn 66% INR 3,750 INR 2,400

Boutique-like store feel Attractive pricing Omni-channel distribution

“Boutique” feel with • “Haute Couture” experience at premium • Healthy mix of online and offline – 50:50
browsing space unlike economy pricing
retail stores where • Focus on expanding internationally to
clothes are jampacked • Comparable product at 5x of Indya’s MRP service the NRI community

Source: Company Data; Note: 1. Basis FY22 2. Net of discounts 9

 FabAlley | Inclusive western wear for India
Strong brand portfolio Omni-channel distribution Data-driven design philosophy Nimble supply chain Superior execution

FabAlley is a rapid-fashion machine producing globally trendy fashion at affordable prices, specifically designed to fit Indian women’s lifestyles & body types

Globally trendy fashion adapted to Indian fit and feel All season fashion
• Rapid fashion model with >100 new • All season, all occasion fashion wear
styles launched on a monthly basis giving something “new” at every
• Data led design + agile supply chain interaction
ensuring best sellers are reimagined & • Strong presence in casual wear, work-
replenished without any opportunity lost from-home & evening wear segments

Translating into exceptional performance

FY22 Sales Gross Margin%1 Average MRP

~INR 650 mn 56% INR 1,800

Distinct brand identity Attractive pricing Online-first distribution

• Body positivity reflecting in designs and • Affordable price points to enable rapid • Online-led growth with own website and
not just communication expansion in tier I/II cities domestic/international marketplaces
• Plus Sizes contribute to 10% of FabAlley’s • Targeting value conscious “change- • Also present in 200+ Large Format Stores
overall online revenue seeking” customer (LFS) across India

Source: Company Data; Note: 1. Basis FY22; 10

 Amassed massive social media following enabling deep customer
engagement
Strong brand portfolio Omni-channel distribution Data-driven design philosophy Nimble supply chain Superior execution

Celebrity brand ambassador Multiple designer collaborations Strong influencer marketing

• Leading actress Shraddha Kapoor became
Indya’s first brand ambassador
• Launched a 360 degree campaign across digital,
Print & Outdoor called ‘That’s My Indya’ for
Diwali 2021
• In pipeline: A new face to be FabAlley’s brand
ambassador to give total face-lift to the brand
Payal Singhal X Indya Rimzim Dadu X FabAlley
• Collaborative capsule collections aimed to
make designer wear accessible to women • One of the largest Influencer network
everywhere among fashion brands in the country
• 500+ domestic bloggers and 50+
international bloggers on Instagram alone

Fastest growing fashion brands on social media: (1.1 mn) (700k)

11
12
 Extensive omni-channel distribution network with a 50:50 online-offline mix
Strong brand portfolio Omni-channel distribution Data-driven design philosophy Nimble supply chain Superior execution

HSE has full distribution capabilities to scale both online and offline channels

App / Website Online Marketplaces

13%
• Specialized D2C fashion platform with 3mn+ • Leading fashion brand across Indian /
monthly sessions across both brands International third-party online resellers 1
41%
25%

20%

Distribution
Footprint
EBOs LFS

2% 17%
• Network of 311 exclusive stores across 15 cites • Operating 370+ store-in-stores across leading
in top malls and high street LFS chains
1
53% 28%

Note: 1. As of Mar-22; EBO: Exclusive Brand Outlets; LFS: Large Format Stores 13
 Dominant online platform making it a D2C fashion powerhouse
Strong brand portfolio Omni-channel distribution Data-driven design philosophy Nimble supply chain Superior execution

Own Website Own App

2.3 Mn+ 1.5 Mn+ 800k+

Monthly Android App Monthly
sessions downloads sessions

56% 44%
% of D2C sales1 % of D2C sales1

3.1x 4.3
LTV/CAC4 Playstore rating

Robust D2C
model INR 490 Mn 59% INR 2,540 3 days 49% Access to rich data on
FY22 Net Revenue3 Gross Margin1 AOV2 Average delivery Repeat orders across consumer buying habits
time all D2C platforms and likes / dislikes
Note: D2C sales refers to total net revenue from own app & website; 1. Basis FY22; 2. Net of discounts; 3. Includes international sales from own app/website;
4. Customer Long-term Value / Customer Acquisition Cost is 3.1x by 3rd year 14
 Leading women's fashion brand across online marketplaces in India
Strong brand portfolio Omni-channel distribution Data-driven design philosophy Nimble supply chain Superior execution

Net revenue (INR mn)1

369
• Present across all major online
162 189
marketplaces in the country

• Operating model is a mix of ‘Drop-ship’

FY20 FY21 FY22 and ‘Out Right’ sales as per partner
requirement
Average ASP • Both brands have separate online
collections for marketplaces based on
INR 1,300 INR 1,000 price points and categories

Marketplace Partners

Online

Note: 1. Net revenue also includes sales on international marketplaces 15

 Strong online presence in the global markets
Strong brand portfolio Omni-channel distribution Data-driven design philosophy Nimble supply chain Superior execution

Tapping international markets through own app/website for Indya Scaling further through international online marketplace
% of total international sales Only Indian brands to list on some of the largest global fashion
USA: 63% marketplaces
Sales Runrate1 Current listings In Pipeline
~INR 230 mn
Australia: 8%

Canada: 5%
(Middle East) (South East Asia) (Europe)
AOV2 (Middle East)
UK: 7% INR 8,400+

(USA) (South East Asia)

Consistently growing international reach through own app/website
Own App/website International net sales (INR mn) International marketplaces net sales (INR mn)

2.4x 43
114
75
47 18
38
17 7
1

H2FY20 H1FY21 H2FY21 H1FY22 H2FY22 H1FY21 H2FY21 H1FY22 H2FY22

One of the fastest growing D2C Indian wear brand in international markets
Note: 1. Basis H2FY22; 2. For international sales though own app/website; AOV: Average Order Value; CAC: Customer Acquisition Cost 16
 Well established offline presence across India through exclusive own
outlets…
Strong brand portfolio Omni-channel distribution Data-driven design philosophy Nimble supply chain Superior execution

Currently operating 31 stores in 15 cities across high visibility locations including top malls and high street locations

Jalandhar (1) 29 EBOs 2 EBOs FY22 Sales

Chandigarh (1) INR 135 mn
Delhi NCR (8) # of EBOs
Lucknow (2) Guwahati (1)
36 38
Kanpur (1) 31
16
Average AOV1
Ranchi (1)
Ahmedabad (1) Kolkata (1) ~INR 3,750
Bhubaneshwar (1) FY19 FY20 FY21 FY22

Mumbai (3) Pune (2) • All, except one, EBOs are company
Hyderabad (1) owned and operated (COCO)
• Small format stores with ~650 sqft of Average ASP1
carpet area and INR 1.5 mn capex ~INR 1,700

Bangalore (5)
Chennai (2) • ~70%1 gross margin
• ~401 days of inventory
City (# of stores) • All EBOs are omni-channel enabled with
Avg. monthly sales2
inhouse tech backbone
~INR 860k

Note: 1. Net of discount; data for FY22; 2. Pre-covid average (FY19 & FY20); COCO: Company Owned Company Operated 17
 …along with prime presence across Large Format Stores (LFS)
Strong brand portfolio Omni-channel distribution Data-driven design philosophy Nimble supply chain Superior execution

Currently operating 409 store-in-store (SIS) with leading LFS platform across the country

# of SIS # of SIS
243 242
193 202 204
174
119 100

FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22

Available in leading large-format / departmental stores

Average ASP2 Avg. monthly sales3 Average ASP2 Avg. monthly sales3
~INR 2,000 ~INR 225k ~INR 1,670 ~INR 230k

• SoR model • ~68%4 gross margin

Key operating
characteristics • ~190 sqft in area with • ~554 days of inventory
one consultant

Note: 1. LFS revenue numbers prior to FY22 vary and are not like-to-like as from FY22 onwards company has started to recognize revenue from LFS channel at the time of
sale to the end customer only as per accounting standard AS115 2. Net of discount; data for FY22; 3. Pre-covid average (FY19 & 11mFY20); 4. For the period FY22 18
 Codified and data-driven design philosophy
Strong brand portfolio Omni-channel distribution Data-driven design philosophy Nimble supply chain Superior execution

Competition Analysis Real Time Sales Analysis

Study bestsellers globally Periodic sell through analysis at
along with foused reaesch micro attribute level to identify
on benchmark and bestsellers & gaps
competitor brands

Trends Research Social Media Analysis

In-depth forecast study of Study of streetstyle fashion via
upcoming trends and stories reels, stories and blogposts by
per season along with Indian & International Fashion
collections of global designers Influencers

Predict & pre-empt Combine forward trend Quick replenishments +

customer needs rather than analysis with comprehensive High inventory turnover +
Unique design
just follow fashion trends sales data analysis to Lean stock depth = Ability to
proposition like other fast-fashion understand customer act on market sentiment in
retailers preferences & feedback real time

19
 Extensive use of leading third-party AI and trends forecasting tools…
Strong brand portfolio Omni-channel distribution Data-driven design philosophy Nimble supply chain Superior execution

Trends research basis ‘WGSN’ & ‘Fashion Runways’ Competition analysis using ‘Stylumia’

Detailed forecast analysis using

WGSN – leading global consumer
trends forecasting tool, covering:
• Upcoming trends & stories
• Color palettes
• Collection architecture

WGSN

Take aways from Fashion Runways: Stylumia

• Study of all international designers
and their seasonal collections
Apparel AI platform for trend forecasting and demand sensing
(Spring Summer, Resort, Fall Winter,
Autumn Winter, Pre-summer) Build insights on the best seller Focused research on benchmark
• Key take aways on: categories, silos, trends, prints and competitor brands to
• Representation of trends etc. of global and Indian brands strengthen own collections
• New shapes/ Design philosophy

Runway

Note: AI: Artificial Intelligence 20

 …along with full stack proprietary data mining tools for in-depth sales analysis
Strong brand portfolio Omni-channel distribution Data-driven design philosophy Nimble supply chain Superior execution

Continuous social media analysis Real-time sales analysis using ‘In-house data mining tools’

AVG
SUB CATEGORY- SELL DISPATCH SALE NO. OF
DISPATCH QTY SALE QTY SALE PER
TOPS THRU% CONTRI% CONTRI% OPTIONS
STYLE
Streetstyle fashion: Social media scan: Proprietary data mining tool TIE UP 2372 1314 55% 5% 8% 2 657
OFF SHOULDER 6297 3137 50% 14% 18% 6 523

• Study of streetstyle fashion globally, • Following reels, stories & blogposts parses sale at micro attribute LACE TOP
WRAP
1629
4513
721
1898
44%
42%
4%
10%
4%
11%
3
5
240
380

through fashion exhibits and fashion by global / Indian influencers for level for every cut, color, length, BLOUSE
PEPLUM
12080
18478
4354
5759
36%
31%
27%
41%
25%
34%
13
17
335
339

weeks like Paris fashion week etc. • New products sleeve, among others for: Grand Total 45369 17183 38% 100% 100% 47 366

• Follow international fashion models • Hauls • Sell-through analysis Tie Up Peplum

& influencers for styling concepts • Multiple ways to style • Monthly performance reviews Top Top

21
 Creating a unique fast fashion proposition attuned to Indian women
Strong brand portfolio Omni-channel distribution Data-driven design philosophy Nimble supply chain Superior execution

Trends
Research

Competition
Social media analysis
analysis

Real-time
sales analysis

Adapting to Indian design sensibilities, body-type & social norms to ease customer’s journey into early trend adoption

1,200+ styles Different collections Trend setter Low MOQs ~40-45 Inventory Days
Per brand For online & offline First to spot runway Offering enviable variety With quick
Per season channels & street style trends with low inventory risk replenishments

Note: MOQ: Minimum Order Quantity 22

 Fast time to market with exceptional supply chain management
Strong brand portfolio Omni-channel distribution
Day 01
Day 20
Demand forecasting Material Procurement
Real-time data on sales Collection Designing
velocity by style &
micro-attributes based Data & trend research
on past collections data to form a design album
Adapt design to suit
Indian sensibility by
using the right fabrics
and silhouettes
Create samples
Data-led design with an agile supply chain ensures high sell-through with low inventory at scale
Note: MOQ: Minimum Order Quantity
Data-driven design philosophy Nimble supply chain Superior execution
Day 50 Day 70+
Day 70
Sales & distribution
Reserved fabric and Own website -> launch
printing capacities with FG Production platform with low Fast fashion
pan-India vendor base MOQs
Hyper-local production Short lead-times =
more fashionable
50% of in season fabric Low inventory for online
Vendor lead-time at 15- clothes
kept in-house for quick of <20 days
30 days
turnaround
Low MOQ = high
Low Inventory to result
Only 50% projected demand & low design
Use of same fabric for in scarcity demand, low
demand manufactured risks
multiple styles discounts & no
upfront, balance based
liquidation
on sales velocity More styles = more
choice & chances of
‘getting it right’
23
 Well established processes for sourcing and contract manufacturing
Strong brand portfolio Omni-channel distribution Data-driven design philosophy Nimble supply chain Superior execution

Procurement Job Work Warehousing & Logistics

• Stitching is outsourced on
In-house sourcing of fabric to : • Own warehouse setup
job work to 3rd party
• Ensure fast time to market within Delhi NCR
vendors with strong quality
• Maintain quality • Multiple logistics partners
checks

Deep vendor base with reserved 35+ NCR based vendors Streamlined & controlled
fabric and printing capacities for job work processes
24
 Led by an experienced management team
Strong brand portfolio Omni-channel distribution Data-driven design philosophy Nimble supply chain Superior execution

Shivani Poddar Devika Srimal Bapna Atul Chachra

Co-Founder & CEO VP, B2B & Strategy VP, Retail
• Past Experience: Unilever • 7+ years of exp. and an • 18 years of retail exp. with
and Avendus entrepreneur Arvind and Forever New
• MBA from FMS, Delhi • MBA from Duke University • MBA from IIMT Noida

Anurag Murali Swati Saha Chirag Goel

VP, D2C VP, Supply Chain VP, Finance
• 7+ years of exp. and a serial • 20+ years of exp. and an • 10+ years of exp. in investor
entrepreneur entrepreneur relations, FP&A & assurance
• MBA, HEC Paris & NYU Stern • NIFT, Delhi • Chartered Accountant

Passionate team with deep entrepreneurial experience across the board

25
Financial
Performance
Business quickly bounced back despite multiple covid disruptions

Continuous month-on-month growth in online sales has strongly supported the business during multiple covid waves when offline operations were
significantly restricted

Online Sales
(INR Mn) Covid 1st wave Covid 2nd wave Omicron
107
84 77 77 83 87
72 67 77 71
57 58 61
46 48 41 56 40 46 45 44 47
35 34 39 38 33 44 43 39
22 23 28
11

Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Apr-21 Jun-21 Aug-21 Oct-21 Dec-21 Feb-22 Apr-22

Offline Sales
(INR Mn)
122 122
100 108 98
84 84 87 86 76
64 70 71 62
58 50 65 69 72 57 58 62
49 47
37 26 30
15 20
6 4 1 2

Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Apr-21 Jun-21 Aug-21 Oct-21 Dec-21 Feb-22 Apr-22

Source: Company data; Notes: 1. Revenue numbers prior to FY22 vary by 10% as FY22 onwards company has started to recognize revenue from LFS channel at the time of sale to the
end customer only as per accounting standard AS115; 27
On track to achieve a large outcome with attractive margins

Net Revenue (INR Mn) Gross Margin (INR Mn)

CAGR: 54% 63% 65% 67% 67% 68%

8,292 5,630
6,236 4,182
3,053
4,376 2,330 2,949
2,706 1,687 1,768
1,570 1,059 5,239 984
2,689 3,906
647 1,647
924
FY22E FY23E FY24E FY25E FY26E FY22 FY23E FY24E FY25E FY26E

EBITDA (INR Mn) PAT (INR Mn)

-7% 8% 15% 21% 24% -16% 0% 6% 11% 13%

1,953 1,091
1,294 667
655 270
206 3

-105 -256
FY22 FY23E FY24E FY25E FY26E FY22 FY23E FY24E FY25E FY26E

28
 Channel-wise unit economics (H2FY22)

App / Website Marketplaces EBOs LFS Overall

Discount (% of MRP) 42% 44% 15% 15% 33%

COGS (% of MRP) 23% 23% 23% 23% 23%
MRP to COGS multiplier 4.4x 4.4x 4.4x 4.4x 4.4x
Unit economics (% of net sales):
Net Sales1 100% 100% 100% 100% 100%
Gross Profit2 60% 56% 71% 69% 64%
Direct Costs:
People 4% 2% 14% 11% 7%
Direct Marketing 43% 10% 1% 0% 15%
Packing & Delivery 16% 17% 3% 3% 10%
Facility 0% 0% 57% 0% 6%
Commission 4% 11% 7% 43% 21%
Contribution Margin% -6% 16% -11% 13% 5%

Channel economics held up despite significant Omicron impact (especially in offline channel) during the months of Dec-21 to Feb-22
Note: 1. Net of all discounts, returns and taxes; 2. COGS is same across all channels (~23% of MRP), difference in Gross Profit is on account of higher discounts in online
channels 29
Growth
Drivers
 Strengthen leadership position in Women Festive & Celebration wear market
1
(1/2)
Branded women festive wear market to grow at ~17% to $3.7 bn Comprehensive merchandise mix to become category leader
Price (in INR)
Total Women festive Branded Women festive wear
wear market market ($bn) 1,500 25,000

$9.8 bn 17% 3.7

Indya (Online) Indya RTW (offline) Indya Luxe
FY20 INR 1,500 – 3,000 INR 2,500 – 4,000 INR 5,000 – 25,000
1.7

$13.0 bn
FY25E FY20 FY25E

Multi-day and Multi-event wedding celebrations

Mehndi Haldi Sangeet Engagement Wedding

National & Regional Festivals adding to category growth

• Target all price points by adding Luxe range along
with a separate online and offline range
• Become market leader in women festive wear
Diwali Durga Puja Rakhi Ganesh Puja Republic Day

Source: Manyavar investor presentation; RTW: Ready to wear 31

 Strengthen leadership position in Women Festive & Celebration wear market
1
(2/2)

With the introduction of Luxe, Indya is best positioned to play a leading Indya will become an integral
Indya Luxe X EBOs
role and dominate the women’s celebration wear market part of people’s celebrations

Opportunity to replicate Manyavar’s success

in Men’s celebration wear
Net Sales (INR Bn)1 578 Stores 1
9
4 222 Cities
Category leader in
1.2mn sqft. Men’s Celebration
FY14 FY20 wear market

Source: Company Data: Manyavar investor presentation 32

2 Opportunity to expand into adjacent categories

Curves by FabAlley Clothing line for Girls Jewelry & Accessories

Opportunity to cross-sell & to increase

 Clothing line for Girls between 5-12 Long-Term-Value of customers
 Plus size western wear clothing line
years
 Widening the existing curve  New contemporary Indya jewellery
 Opportunity to quickly scale as LFS
collection of tops, dresses,  Range of belts, bags & clutches
partners already onboard for its
jumpsuits etc.  New range of ethnic footwear incl.
introduction in stores
jutis, mules & slip-ons

Increasing depth of product-mix to capture larger wallet share

33
3 Strong focus on capturing the highly lucrative international market (1/2)

Indya is shipping globally and is becoming the go-to ethnic brand for NRIs

34
3 Strong focus on capturing the highly lucrative international market (2/2)

D2C to be the key lever for capturing Further scale presence across leading Expand foreign retail footprint through
NRI audience international marketplaces distributors & franchisee stores for Indya

Large Indian Strong-rooted High spending

diaspora traditions power
Playbook for retail expansion

Enter Canada/ US
market through SIS1
model in Indian-owned
department stores
Potential to grow international D2C business
to INR 100 Mn per month by 2023 Both Indya & FabAlley are currently listed on Explore the market with
select international marketplaces 1 franchisee store
D2C International Net Sales
(INR Mn) 100
Zalando listing in- ~30%
process # of international stores of Ethnic brands
of online marketplace
31
14 Europe’s largest sales to come from
6
online fashion retailer international channel
12 11
(~€15 bn in GMV) by 2024
Oct-19 Oct-20 Oct-21 Oct-23

Note: 1. SIS stands for Shop-in-Shop 35

4 Expanding distribution footprint across all online and offline channels

Building on growth momentum to further scale online reach Continue to widen retail store footprint Pan India

Ramping up digital marketing spend Reducing cost per transaction1

(INR Mn)
560 720 450
416 FY22 FY26E
298
194 219 Increasing average order value2

2,400 3,200

FY22 FY23E FY24E FY25E FY26E FY22 FY26E

# of Store-in-stores # of EBOs
(LFS channel)
1,200 130
1,000 105
Setting the stage to become a D2C giant with INR 2,500+ Mn in sales by FY26 700 800 80
378 31 43
CAGR: 52% 2,585

Own App/ Website Sales 1,863 FY22 FY23E FY24E FY25E FY26E FY22 FY23E FY24E FY25E FY26E
(INR Mn)
1,101
689 Add key accounts like Trends, Plan to reach 55+ Indya EBOs
489 Pantaloons plus regional MBOs across 25 cities by Dec 2023

Reach ~800 SIS pan India by Roll-out more experimental

FY22 FY23E FY24E FY25E FY26E FY24 FabAlley & Franchise Stores

Note: 1. Calculated as digital marketing spend / # of orders; 2. AOV is basis net sales (net of discounts & returns) 36
Annexure
 Ethnic wear & western wear are the most attractive segments in India’s
women’s apparel market
xx% CAGR FY20-25E
FY20 Total Apparel
Market- $ 60 Bn Established Presence Under Progress
Saree, Blouse & 8.2
CAGR FY20-25E 6% Not Present
8% Petticoat 11.3

Kid Ethnic wear is the largest

s' segment in women’s apparel
Salwar Kameez 7.1
23 9%
% & Kurtis 11.2

Women's 3.3
36% Innerwear 14%
6.3

2.2
Western wear 13% Western wear is amongst the
Me 4.0 fastest growing category
n's
41
%
Others (Winter 0.9
5%
wear etc.) 1.1

FY20 FY25E

Source: GO Colors DRHP 38

Online women’s apparel market poised to reach $7 Bn+ by FY25

Online will be >22% of the overall women’s apparel market Key growth drivers for online fashion
Online Women’s Apparel Market
($ bn)
CAGR: 18% 7.3 • Fashion is the 2nd largest category online after electronics
• Increased smartphone penetration enabling easier reach
to tier 2+ cities
3.2

• Emergence of strong online D2C brands tackling white

FY20 FY25E spaces that were traditionally unorganized like ethnic
• Increasing accessibility & affordability of fashion goods
% of total
market
15% 22%

Total # of online fashion1 shopper to increase to 370 mn • Convenience of online shopping and hassle free returns
• Increased adoption and comfort around online shopping
# of shoppers 435 since covid
370

180 150
• Increasing adoption of fast fashion in India adding to
frequency of purchase
• Online spend per shopper to increase as a result
FY20 FY25E
Total online shoppers Online apparel shoppers

Source: Go colors DRHP; Avendus estimates Note: 1. Fashion market here includes apparel, footwear & accessories 39