Solethreads Secures Impressive $3.7 Million Funding from Fireside Ventures and Other Investors
Solethreads Secures Impressive $3.7 Million Funding from Fireside Ventures and Other Investors
Direct-to-consumer (D2C) footwear startup, Solethreads, has successfully raised $3.7 million (approximately Rs 31 crore) in its Series A funding round. The investment was led by Fireside Ventures, along with participation from existing investors, DSG Consumer Partners, and Saama Capital. This latest funding concludes the Series A round, during which the company had previously raised Rs 27 crore in 2020 and 2021.
Established in 2020, Solethreads specializes in selling a variety of footwear, including flip-flops, slides, and sneakers, catering to both men and women. The brand adopts a multi-channel approach, serving customers through online platforms as well as offline retail channels. With the new capital infusion, Solethreads aims to further expand its product offerings, enhance its market presence, and continue its growth trajectory in the competitive footwear market.
With the fresh funds raised in its Series A round, the Gurgaon-based firm, Solethreads, has strategic plans to allocate the capital towards research and development, as well as expanding its product portfolio. Currently offering a wide range of 1,200 stock-keeping units (SKUs) in footwear, the company aims to remain at the forefront of design and innovation in the industry.
To achieve this, Solethreads intends to build an in-house design team, enabling them to lead the curve in creating cutting-edge designs and innovative products. The focus on developing an in-house design capability is seen as crucial in driving the brand’s competitiveness and differentiation in the market. By investing in research and development, the company aims to stay ahead of evolving consumer preferences and market trends, while enhancing its position in the D2C footwear segment.
Sumant Kakaria, the co-founder and chief executive of Solethreads, expressed the significance of bolstering the company’s back-end capabilities to support its vision for superior designs and product offerings. The strategic utilization of the newly acquired funds will contribute to Solethreads’ continued growth and success in the dynamic and ever-evolving footwear industry.
Apart from its online sales channel, Solethreads has already established a strong omnichannel presence by partnering with around 600 multi-brand outlets through distributors. Additionally, the company’s products are available in well-known retail formats like Shoppers Stop, Reliance Retail, and Metro Shoes.
Looking to further enhance its offline reach, Solethreads has set its sights on opening its own branded stores. Currently, the company has one physical store in Mumbai, and it aims to expand this footprint to 10 stores across the country by the end of the ongoing fiscal year. The move to establish its retail stores aligns with Solethreads’ strategic vision to strengthen its brand presence, engage directly with customers, and offer a personalized shopping experience.
By broadening its retail presence through exclusive brand outlets, Solethreads seeks to establish deeper connections with its customer base and drive brand loyalty. These efforts, combined with the focus on product innovation and design excellence, are part of the company’s overall growth strategy to consolidate its position as a prominent player in the competitive D2C footwear market in India.
According to Vinay Singh, the co-founder and partner of Fireside Ventures, the footwear market in India is undergoing a significant transformation. As the country’s GDP per capita rises, the footwear industry is expected to witness rapid organization. To succeed in this evolving landscape, new footwear companies need to prioritize aspects like new product development, innovative designs, and effective distribution strategies to build compelling brands that resonate with GenZ and early millennial consumers.
Solethreads, recognizing the vast potential in the non-leather footwear segment, is positioning itself strategically to capitalize on this growth. The company stated that the non-leather footwear industry in India is projected to expand eightfold by 2030, and it is set to surpass the $6 billion mark by 2024. With these promising market prospects, Solethreads aims to leverage its recent funding of $3.7 million from Fireside Ventures, DSG Consumer Partners, and Saama Capital to fuel its research and development initiatives and broaden its product portfolio, which currently features 1,200 stock-keeping units (SKUs).
As Solethreads strengthens its in-house design capabilities and continues to build its brand presence through both online and offline channels, it aims to establish a solid footing in the Indian footwear market. The company’s strategic expansion plans, including the opening of 10 branded stores across the country, are geared towards connecting with customers directly, enhancing the overall shopping experience, and creating a loyal customer base. By combining innovation, quality, and appealing products, Solethreads endeavors to be at the forefront of the dynamic and growing D2C footwear space in India.
Solethreads has demonstrated steady growth in its financial performance, recording a revenue of Rs 25 crore in the fiscal year ending on March 31, 2023. The company has ambitious plans for the upcoming year, aiming to double its revenue and close at Rs 50-60 crore in FY24. Looking further ahead, Solethreads is targeting an annual run rate of Rs 100 crore within the next year, showcasing its determination to establish a strong presence in the market.
CEO Sumant Kakaria emphasized that the company’s vision goes beyond creating a niche boutique brand with limited reach. Instead, Solethreads aims to capture a significant portion of the market and expand its wallet share. With a vast potential in the non-leather footwear industry and ample room for growth, the company is confident in its ability to cater to a wide audience of customers.
To achieve its goals, Solethreads understands the importance of a robust go-to-market strategy. Executing effective marketing and distribution strategies will be critical in reaching out to customers and solidifying its position as a leading player in the footwear market. By focusing on product understanding and efficient execution, Solethreads aims to build a successful brand that appeals to a broad customer base and thrives in the evolving landscape of the D2C footwear segment in India.
Amidst growing interest from venture investors in the direct-to-consumer (D2C) footwear segment, Solethreads’ recent fundraising of $3.7 million has added to the momentum. Several D2C startups in the footwear space, including Neeman’s, Nirmalaya, and Plaeto, have attracted attention from investors. Additionally, the acquisition of casual sneaker startup Flatheads by youth fashion brand Styched further indicates the appeal and potential of the D2C footwear market, making it a dynamic and competitive space for companies to expand their presence and capture a wider audience.
