Sara Ali Khan-backed D2C apparel brand The Souled Store has reached ₹492.4 Cr operating revenue in FY25, up from ₹360 Cr in FY24

D2C apparel brand The Souled Store reported a 37% rise in operating revenue to ₹492.4 crore in FY25, driven mainly by product sales.

Net profit fell to ₹11 crore from ₹17.7 Cr in FY24 due to higher taxes and rising costs. Total expenses increased to ₹487.5 crore.

The brand serves over eight million customers through its website, app, marketplaces, and 40+ offline stores, and recently acquired Redwolf to expand its merchandise offerings.

About The Souled Store

The Souled Store was founded by Vedang Patel, Aditya Sharma, Rohin Samtaney, and Harsh Lal. The four came from professional backgrounds in engineering and law and started the company with just ₹5.5 lakh of their own savings.

They wanted to sell official pop culture merchandise that fans would enjoy wearing and using. The company was officially incorporated in 2014 and began by selling T-shirts online.

Over the years, the product range expanded to include hoodies, footwear, accessories, and lifestyle items.

Today, The Souled Store holds licenses for more than 200 global brands and characters, including Marvel, DC, Naruto, One Piece, Disney, and Harry Potter.

Most customers shop through the company’s own website and app, which make up over 90 percent of sales, while online marketplaces and physical stores add additional reach. The brand now serves over eight million customers across India.

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The Souled Store: Revenue and funding

In FY25, The Souled Store’s operating revenue reached ₹492.4 crore, up 37 percent from ₹360.2 crore in FY24. Almost all of this revenue came from product sales, with membership fees adding a small portion. When other income such as interest and small miscellaneous earnings is included, total income reaches ₹500.1 crore.

Growth came from several factors. Daily orders now range from 15,000 to 20,000, the average order value increased, and new offline stores brought in additional customers. Licensed merchandise, especially anime and superhero-themed products, continued to perform well.

The company has raised $29.5M-$30M across four funding rounds. Its largest round was $16.4 million in March 2023, led by Xponentia Capital. Earlier rounds came from Elevation Capital and the RPSG Group, while actor Sara Ali Khan joined as an angel investor in 2022. The company has grown steadily without relying heavily on cash burn.

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Expenses: Rising costs as the company expands

As revenue increased, expenses also grew. In FY25, total expenses were ₹487.5 crore, up 36 percent from ₹358.4 crore in FY24. This means the company spent nearly all the money it earned to run and grow the business.

The biggest cost was buying inventory. With more products and higher volumes, spending on stock rose sharply, accounting for about 43 percent of total expenses. Employee costs went up as the company added staff for stores, supply chain, technology, and design work.

Marketing expenses grew at a slower pace than revenue, showing that repeat customers and brand awareness helped reduce promotion costs. Logistics and delivery costs increased as the company expanded its offline store network, and rent, marketplace fees, and other operational costs also rose.

Profit and margins: Why net profit fell

Profit before tax increased to ₹12.8 crore in FY25 from ₹10.1 crore in FY24, showing that operations improved. However, net profit fell to ₹11 crore from ₹17.7 Cr (some sources report ₹18.2 Cr), mainly due to taxes. FY24 included a large tax credit, while FY25 required a normal tax expense, reducing the final profit number.

Margins remained stable, with EBITDA at 9.7 percent and return on capital employed at 7 percent, indicating that the business continues to operate efficiently even as costs rise.

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Year-on-year performance: FY23 to FY25

The last three years show steady growth. Operating revenue grew from ₹233.5 crore in FY23 to ₹360.2 crore in FY24, and then to ₹492.4 crore in FY25. This amounts to an average annual growth of about 45 percent.

FY23 was a loss-making year, but FY24 marked the first profitable year. FY25 shows the company can remain profitable even as growth slows slightly. In India’s D2C space, staying profitable while expanding is not common.

The Road Ahead for The Souled Store 

In April 2025, The Souled Store acquired Redwolf, another pop culture merchandise brand. The acquisition adds new product styles, especially in movies, TV shows, and music-themed merchandise. It also strengthens the company’s position in licensed merchandise.

The brand continues to expand its offline retail presence. Currently, it has over 40 profitable stores in Tier-1 and Tier-2 cities and plans to grow the number further in the next two years.

Author’s Note: The financial data in this article are based on reports published by Entrackr.

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