How digital savvy apparel brands are scaling without external capital

livemint.com:

₹75 crore business without any venture capital. Like Suta, several apparel brands in India have bucked the trend of startups relying on external capital to scale businesses. Despite capital becoming scarce, the advent of social media and online platforms has democratized brand reach, enabling these companies to grow profitably, albeit at a slower pace.

Over the past three to four years, online channels like Instagram have gained significant prominence, allowing brands to connect directly with their target audience. These brands have benefited from the premiumization of products and growing disposal incomes as Gen Z and millennials spend more readily on niche and specific categories. With about 55% customer retention, Suta earns a little more than half of its revenue from its website and other social media applications.

It also gets a significant chunk of its income from online marketplaces like Myntra, while its offline stores contribute to the remaining. Over the years, the company has added several other offerings that include sarees, blouses, menswear, and accessories. Similarly, Mulmul, another premium brand that sells ethnic wear, including suits, sarees, and designer wear, has bootstrapped its way to the ₹100 crore revenue mark over a five-year span.

Run by a third-generation textile entrepreneur Harsh Modi, who claims to have previously produced material for many international brands such as Zara and H&M, the company gets about 80% of its orders from metro cities. In the initial days, the company gained traction through influencer marketing and social media platforms such as Instagram which had contributed to the bulk of its revenues. However, much like Suta, Mulmul has been focusing heavily on offline presence