Women’s fashion brand Shree raises ₹ 80 crore Equity capital from Alpha capital

Key Highlights

Alpha capital, a Mumbai based private investment company has made an investment of ₹ 80 crore in the women’s ethnic fashion brand Shree.

The company will reportedly use this investment to further their reach in existing market as well as in making their presence felt in new regions across India.

The owners of the company also aim make happen their vision of opening around 300 stores in India in the coming years.

Alpha capital, a Mumbai based private investment company has made an investment of ₹ 80 crore in the women’s ethnic fashion brand Shree.

The Delhi based company is marketed by SRH lifestyles and was launched in 2009 by Sandeep and Sheetal Kapoor. The company will reportedly use this investment to further their reach in existing market as well as in making their presence felt in new regions across India. Shree is particularly said to be eying the south Indian market. The owners of the company also aim make happen their vision of opening around 300 stores in India in the coming years. They also will add senior talent to their teams and strive to increase their consumer base. Their primary goal is to make their presence felt nationwide.

Related : Half Moon Bay-based drone-delivery startup Zipline raises $190 Million, valuation crosses over $1.2 Billion

Currently, Shree operates around 60 stores, 15 manufacturing units and 3000 multi-brand outlets in India. They mainly have stores in the northern India with select outlets in Maharashtra, Madhya Pradesh, Gujarat and Rajasthan. The company netted ₹ 92.6 crore in sales and made ₹12.7 Crores in profits over the course of the past year.

Alpha capital was extremely elevated to welcome Shree to their eco system and that this is exactly the kind of venture they were interested in backing.  Alpha capital is primarily based in Mumbai and is an independently owned investment management venture.  It was founded by Vishal Ootam and Vivek Anand PS. This is the second known deal for them in 2019 after reinvesting in the company Incred.

Alpha capital is funded by Singpore’s Khattar Wong group, Vini Cosmetics and Manipal group. The firm has also made investments in Just buy live, Hero Electric which is India’s largest electric 2 wheeler company and the digital platform Mosaic digital. They usually are interested in investing with companies that have a minimum of 10 years of experience behind them and a career of 15-20 years ahead.

Related : InCred secures $58 Million equity round led by NDFC

Shree is one of the many leading ethnic brands in India which have received private equity investments. In past, women’s fashion brands like BIBA has received funding from Warburg Pincus and Faering Capital.  General Atlantic has invested in AND and TA associates has invested in W over the course of last few years. Apart from these companies, Fab India, which is one of India’s leading ethnic brands have received investment from PremjiInvest and L capital which is the private equity arm of the luxury brand Louis Vuitton.The PE firm Kedaara Captial owns about 10% stake in Vedant fashion which is the parent company of Manyawar ethnic clothing. They acquired this stake for ₹450 crore in 2017.

Ethnic clothing sector is highly structured due to the efforts of the retailers and hence making it popular with investors. Brands like Manyawar have offered about 30% returns to the investment to their respective franchises. Apart from this, the other key reason for the boom of the ethnic wear market is the hugely popular wedding industry in India and demand for clothing during numerous religious and cultural occasions throughout the year.   

Stay connected with us for latest updates!