Snitch Shark Tank
How many times has it happened that all 5 sharks have invested in a particular brand altogether?
It happens once in a blue moon, right?
Snitch is one of those rare brands, which has captured the interest of all the sharks. What an ACHIEVEMENT! being able to tick all the boxes of all five sharks.
Snitch is a fast fashion growing brand for men. Let us check out what is so special about this brand, that it has successfully managed to bring all the sharks on the same page.
Snitch Brand and Snitch Clothing
This brand is rapidly gaining popularity in men’s fashion. They are known for their Stylish, Colourful, Glamorous, and Exciting clothes.
It is the first brand in India to launch Co-ords sets for the Men category. All their products are 100% made in India.
Vision: To make Snitch India’s biggest fashion brand for men and capture the global market.
They started in 2020 and currently they ship 2000+ orders on daily basis.
Daily visitors on their site are 50,000+ and to date 5 lakh people have downloaded their app.
Their conversion rate is 2.5 to 2.8% and an average order value is ₹1700
If I have to describe these numbers in 4 words. It would be “They Are Killing It”
The reason behind their massive popularity and rapid success is that they provide amazing quality like Zara and H&M but at a comparatively lower price point. Also, they are available in tier 2, tier 3, and tier 4 cities where H&M and Zara are either not easily available or are totally inaccessible.
They call themselves a mass premium brand, which is positioned between Max and H&M in terms of price point.
They have a team of 7 to 8 designers and the founder personally is very involved in the designing process.
Since they are into fast fashion, the styles change every week or every month. So in order to save themselves from dead stock they make only 50 to 100 pcs of each design. Then they observe the traction and determine how many days that stock will last.
They have developed a small technology in WhatsApp that gathers all these data and accordingly, if need be, the trigger goes to the production team to replenish the stock on the website ASAP.
Their process from Design to making it live on the website within 25 days is what gives them an advantage over other well know brands like Pantaloons, Lifestyle, Allen Solly, Reliance, etc. The founder attributes a huge percentage of his success to cracking this supply chain.
Also, before making the appearance in Shark Tank the company was Bootstrapped (Founder has all the equity. They use their savings or take loans and put that money into the company). They however have a debt of ₹4.5 crores from friends and family.
Let us have a look at their sales.
(July 2022)- ₹9 crores. From this own website was ₹6 crores and the marketplace was ₹1 crore and B2B offline was ₹3 crores.
Out of this 52% is COGS (manufacturing costs), Marketing is 24%, Shipping is 8 to 10%, operating costs are 9% and EBITA (Earning before interest, tax, and Amortization) is 5%.
(2021 to 2022)- ₹44 crores revenue.
Projected revenue in (2022 to 2023)- ₹90 to 100 crores.
A brand like this is a GOLDMINE for sharks.
To get a discount you can use the coupon code: Cold
Social Media Accounts
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Sidharth Dungarwal from Banglore is the founder of Snitch clothing. Clothing was his passion from the age of 14. He had never thought of opening his own clothing brand but he just went with the flow and happened to take the right decisions at the right time.
Let us see how his journey unfolded from joining his father’s jewelry shop to being a retailer of men’s clothing to manufacturing clothes for his own brand.
He does not have any degree from IIT, IIM, or even an MBA degree, but he describes himself as a hardcore hustler.
His father had a jewelry shop and after his graduation from B.Com, he joined his dad’s shop but had no interest in it.
Luckily for him, a shop was vacating beside his dad’s shop and he convinced his father to buy that shop for him and let him do something in clothing. His father agreed to it without a single question.
Initially, he would sell factory leftovers in Retail and did well till 2012. Now one of the factories from which he was sourcing his clothes wanted to sell their fabrics. At the same time, he had a buyer who was willing to buy the fabrics.
He needed 25 lakhs to buy the fabrics from that factory. So he took the loan and purchased the materials. Now the factory to whom he was planning to sell went under audit and he was not able to dispatch the fabrics for 25 to 30 days.
Instead of cursing his bad luck, he decided to make swatches of the fabrics and send them to retailers. One retailer from Mumbai loved his fabric and asked him to make a shirt from it.
He found one small factory and went there for 3 to 4 weeks to study everything about manufacturing. He himself designed 200 to 300 pieces of shirts and send them to that retail store. Over the weekend all his shirts were sold. He made ₹6.5 lakhs whereas by just selling fabrics he would have made only ₹3 lakhs. This is the perfect example of a blessing in disguise.
This is where he realized that manufacturing is a bigger game. He scaled his business to ₹50 to ₹60 crore annual revenue. He later saw a gap where every brand was following a traditional pattern and that is when he got the idea to start Snitch.
He started with B2B and sold his clothes to retailers. He produced small quantities in small quantity and initially got a good scale. In 2020 because of the pandemic, they had a lot of inventory and therefore he launched his own E-commerce website. Since then it has been a roller coaster ride.
He is very much inspired and learned a lot from all the sharks, especially Aman Gupta. His parents are his role models and attribute his success to them.
Funding asked from the sharks
₹1.5 crores for 0.5% equity
Siddharth’s wish of bringing all 5 sharks on board was successful and they gave the combined offer of ₹1.5 crores at 1.5% equity which he accepted and the deal was sealed.
I would conclude this blog with some of the important lessons that we can learn from Entrepreneurs like Siddarth.
- Do something in the field you are passionate about.
- It’s OK if you do not have a degree from a prestigious institute, you can still make it big.
- When things don’t go as per your plan, you change your strategy and make the best out of the situation.
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