An in-depth analysis of Snitch’s transformation from a nascent brand to a leading force in the young and innovative menswear segment in the Indian fast fashion domain…
In an industry dominated by fast fashion and fleeting trends, one D2C menswear brand is redefining what it means to dress with purpose and style. With a commitment to quality craftsmanship, sustainable practices, and a direct-to-consumer model that cuts out the middleman, Snitch is not just selling clothes, but creating a movement for the young adult population in India. By focusing on timeless pieces that combine modern aesthetics with enduring functionality, Snitch is transforming the way men think about their wardrobes.
And investors are sitting up and taking note. In December 2023, Snitch successfully closed a Series A funding round of Rs 110 crore co-led by SWC Global and IvyCap Ventures. The investment, supported by key angel investors, was expected to catalyse Snitch’s expansion in talent, technology, and an offline retail strategy, building upon its already impressive market performance.
Siddharth Dungarwal, Founder & CEO of new age D2C brand, Snitch told Editor, IMAGES Business of Fashion, Surabhi Khosla that the funding is ear-marked for 3 key things – talent, technology, as well as expanding the brand’s offline presence.
“Largely, this funding has been raised to attract the best talent, build the sort of technology that we think is going to last for the next five to seven years, and then obviously expand offline as well,” he explains.
This funding round stands out, especially at a time when many late-stage D2C brands struggle to secure capital and it seems as if the investors have hit the bull’s eye, since the brand’s target audience is responding in kind, with Snitch experiencing phenomenal growth and launching new stores every fortnight to cater to these discerning customers.
Vision & Mission
So how did Snitch go from being a fledgling young brand to becoming all the rage in the young, menswear segment and a pioneering innovator in the fast fashion domain?
Dungarwal gives a simple response to this. “When I was a student myself just a few short years ago, I used to disconnect from brands that existed in India since they were more traditional in their designs, pricing and general retail approach. I was looking for something trendier, something that would stand out – a brand that would resonate with the Gen Z community. Zara and H&M were a couple of international brands that catered to this requirement but then too, mostly for women. Men did not have much to choose from and that was a big insight for me.”
“It was then that I decided to launch a brand for men – something that would stand out from the crowd, a brand which would give men trendy categories to choose from. Thus, Snitch was born,” he says.
And since then, the brand has expanded at a dizzying rate, launching new stores every fortnight.
Emerging New Categories
Dungarwal’s vision took Snitch from a run-of-the-mill D2C menswear brand to a futurist brand. He introduced never-before-heard categories for men – for example, co-ord sets, which is now the No. 3 bestselling category at Snitch and is showing continued growth. Shirts, of course, remained the brand’s highest-selling category since its inception, contributing to almost 50% of its revenue.
As the brand’s popularity began to grow, so did its categories.
“We have launched fragrances for men, which are doing amazingly well for us. We also launched jewellery for men and that is also a high-performing category. Recently, we even introduced footwear,” he says.
The brand’s average selling points are between Rs 1100 and Rs 1200 while the average order value online is Rs 1800.
“We want an inventory churn to happen every single day and thus we treat our products like perishables. For this, we release a new design/product every single day and we have also built a very strong supply chain. We have also partnered with great vendors across logistics and built an entire network to facilitate post-purchase satisfaction for our customers,” he adds.
The brand outsources its manufacturing, but only works with factories on the condition of exclusivity, so the entire capacity of the factory is blocked by Snitch. All manufacturing facilities as well warehousing are located in Bengaluru.
“Being close to suppliers and transportation hubs makes it easier to replenish supplies quickly and respond to logistics partners, which improves overall operational efficiency and customer satisfaction,” explains Dungarwal.
Snitch, which added 50,000 sq. ft. to its warehousing facilities in January 2024 – is integrating cutting-edge technology like Enterprise Resource Planning systems, Performance Improvement tools, IoT devices, and potentially automated systems to improve inventory tracking accuracy, enhance the efficiency of picking & packing processes, and offer valuable data analytics for informed decision-making.
Strategic Expansion & Market Presence
- In Snitch’s state-of-the-art showrooms, customers can discover an extensive range of over 1000+ styles across more than 13 categories, all conveniently available under one roof.
- Snitch plans to extend its presence to major metros like Mumbai and Delhi and emerging cities such as Pune, Vijayawada, and Dehradun.
- In January 2024, the brand expanded its warehouse facility by an additional 50,000 sq.ft., augmenting its warehouse capacity to 1,00,000 sq. ft. and now dispatches an increased number of shipments.
- Founded in 2020, Snitch gained attention on Shark Tank India Season 2 by securing an All Shark Deal and recently raised Rs 110 crore in Series A funding round.
Sustainability
Inventory churn aside, Dungarwal insists that Snitch is working towards a more sustainable fashion future.
“We have partnered with a company called Relove which has helped develop a platform that allows customers to sell back products they have bought from Snitch to other buyers on the brand’s website. These are used clothes and the seller is verified with the help of the Relove platform,” he states.
Aside from this, in terms of production, Snitch uses plant-based chemicals and recycled fabrics as well as focuses on what sort of circular product line it can create in terms of the fabric compared to any other brand. The brand’s packaging is also plastic-free with orders being shipped in organic paper boxes.
Alongside the focus on increased capacity and strategic locations, Snitch is committed to sustainability initiatives within its warehouses. Efforts have been made to adopt eco-friendly practices such as energy-efficient lighting and improved waste management systems. Additionally, the company has prioritised continuous workforce training to ensure effective utilisation and adaptation to the newly implemented technologies.
However, as Dungarwal says, it is still early days and the brand has plans to do a lot more for sustainability in the future.
Expansion Plans
The brand is now all set to execute its strategic expansion plans, targeting new markets to capitalise on growing global demand. This initiative aims to enhance market presence and drive signiȃ cant revenue growth with the help of technology. “AR is something that Snitch is looking at very, very closely. Aside from this, RFID and customer data analytics are important technologies for growing the brand,” says Dungarwal.
He explains that a lot of nuances around men not being fashionable are changing. “We have over 10 lakh customers and we have collected a lot of data over the last 3 years to substantiate this fact. We have used this data to create heat maps which show us areas that have a more concentrated consumer base for Snitch and that is our first indicator on exploring geographies to open new stores,” Dungarwal says.
Dungarwal says for now Snitch is focusing on the south and west of India. He says the brand does not want to depend on malls. “We are happy to collaborate with good malls but we want to create good high street stores as well,” he says.
While the average store size for Snitch is between 2000 to 2500 sq. ft., it also has stores which are 8000 and 4000 sq. ft. respectively and has recently launched its largest store in HSR Layout, Bengaluru spanning 10,000 sq. ft. The area is known for its diverse population, including young professionals and expatriates, and its proximity to major IT hubs, makes it an attractive location for the brand to expand into.
The new store will showcase Snitch’s latest collections, featuring contemporary designs and a curated selection of men’s wear, perfumes, shoes, and sunglasses. Additionally, it is the first Snitch store to have a dedicated Lux collection floor.
“We have already been growing at a very decent pace. We started in 2020 and the first year we closed at about Rs 11 crore. The next year we did Rs 44 crore and after that, we closed at Rs 120 crore. We are almost at Rs 600 crore annual revenue run-rate (ARR) currently,” he says.
“We are, however, not chasing numbers. We want to be the No.1 fashion brand for men in India and that is our vision and focus. I think 5 years down the line, we want to have over 100 stores and be the number one choice for men when it comes to fashion,” Dungarwal concludes.
