Wed May 04 2022
2 min read
The fashion industry is quite volatile, making forecasting a mammoth task on the best of days. India is now home to more than 17,000 fashion brands, 55% of which are less than 5 years old. Every year, brands in the business of apparel and fashion accessories see a slump in the months of January - March owing to the onset of season change and heavy discounts during the “stock clearance” sale period. Growing fashion brands often tackle the challenges of inventory upkeep and sunk costs around urgent deliveries to keep up with the orders. These costs are often diverted from marketing spends & branding expenses that can help pave way for growth.
Instead of placing emergent orders with their suppliers to bridge their inventory gaps, homegrown fashion brands in India are stocking up months in advance to match the demand of the new season.
It often comes down to bulk purchasing during this “off-season” so that brands can leverage cash discounts and planned delivery timelines. Fashion labels & mass apparel brands stock up before announcing their collections and access to capital can support these brands during an uphill juncture in the market.
That is exactly where our way of Revenue Based Financing supported BeYoung, one of India’s largest online stores for casual wear with inspirations from pop culture, leisure and summer colours for the young and old alike.
We are excited to share that we facilitated funding for BeYoung and with this founder-friendly injection of capital, the brand plans to tackle its inventory upkeep challenges before the onset of the new season. This growth capital also helped the brand to gear up for the new season's demand for BeYoung’s wardrobe of fresh & trendy wardrobe & accessories.
No, obviously! Joining the klub made sense for BeYoung because the brand could leverage a mix of short term and long term debt from us by opting for multiple capital structures offered by Klub. We aren’t kidding when we say, we have something for everyone 😉
Our vision of building a community of brands “growing on their own terms” is now taking a definite shape & we could not be happier about doing our part in strengthening the startup economy.
Shivam Soni, Founder of BeYoung shared:
Klub's association has given us a boost to fasten-up the process of giving BeYoung a massive visibility and meeting the milestones we have set. The entire journey with Klub was very seamless starting from the onboarding process to the execution. We are delighted to work with Klub and hope to have a long-term business association.
Having raised capital through all of our capital structures, our theory of enabling growth through customised funding is getting acknowledged for its merits by brands and founders across industries. Seems like we are close to creating a dent in the funding ecosystem 😉
Subhashish Bhadra, Director of Capital Platform at Klub shared:
India’s apparel market is expected to conservatively grow 8% for the next 2 years, which will benefit over 17,000 indigenous fashion apparel & accessory brands. BeYoung is a well-recognised and fast-growing brand in this space, which is why it was able to access capital from three of our product lines.
Brands across industries choose Klub so you can believe us when we promise to make it happen for your brand. Join the klub here 🚀