NEW DELHI: Fashion etailer Yep-Me plans to open 400 stores by the end of this financial year in keeping with the omnichannel strategy followed by most e-tailers to ramp up sales.
The Gurgaon-based company, which has four stores in the suburban city, has identified cities including Noida, Meerut, Bengaluru, Hyderabad, Ludhiana and Latur for expansion through franchise route, CEO Vivek Gaur said.
Most of the stores in metros will be company owned and operated while those in tier II towns will be franchisee owned and operated, he said.
“From the four outlets in Gurgaon, we are doing five times more than what we do from online sales in the same city. We figured out that we can sell profitably and get a multiplier on online sales by having an offline presence, putting us in a different orbit altogether,” said Gaur. “By Diwali we plan to hit 75 to 100 outlets,” he said.
The company is attempting to offer a seamless shopping experience across multiple towns by running similar schemes and offers, allowing “anywhere returns” of products bought by customers across stores in different cities.
Shipments of goods bought from its website in smaller towns will be made directly from the stores rather than the company’s warehouse, provided the store has that inventory, Gaur said. YepMe, founded in 2011, raised $75 million in September last year from investors led by Malaysian state fund Khazanah Nasional Berhad and existing investor Helion Advisors participating in the round.
The company, which positions itself as an online fashion brand that makes its own brand of products, is aiming to clock revenue of Rs 280 crore this fiscal compared to a loss of Rs 40 crore last year.
The company, which competes with Myntra, Amazon Fashion, Limeroad and Zovi, is also betting big on software sales to push up revenues. It has started pitching to omnichannel single-brand players integrated software Omni Catalyst developed by its parent firm VAS Data that manages both online and offline inventory.
Gaur said the company is planning to hive off the software unit into a separate entity. Also eyeing software as a large business ensuring high margins, It is talking to investors to raise $15-20 million for the hived off entity, he said.