Snitch, the innovative company that appeared on Season 2, Episode 20 of Shark Tank India, is well-known to us all. Their impressive pitch won over the sharks, who offered them Rs 1.5 crore for a mere 1.5% equity, ultimately sealing the deal for Snitch.
In this article, we deep dive into the fascinating story of Snitch’s founders, explore their innovative business model, and discover how Snitch is leveraging cutting-edge technology to shape and elevate their brand.
About The Founder
Meet Siddharth R Dungarwal, the dynamic 35-year-old founder and CEO of Snitch, hailing from the bustling city of Bangalore. With a background in commerce and an undeniable passion for clothing since the tender age of 14, Siddharth considers himself a true hustler. After years of helping his father at his jewelry shop, he initially started his own business by selling procured materials from factories in retail. However, in 2012, Siddharth pivoted his focus to manufacturing, only to later spot a gap in the market and cleverly seize the opportunity through the establishment of Snitch.
|Legal Name||4M Clothing, LLP.|
|Industry||Retail Apparel and Fashion|
|Founder’s||Damanbir Singh & Harshvardhan|
|Number of Employees||11 – 50|
|Total Amount of Funding||15 Million (INR)|
Snitch Sales and Revenue
Here is a list of information about snitch sales and revenue that will help you understand the profit they have made up until 2022.
- Last month’s sales amounted to ₹9 crores.
- The company generated ₹6 crores from their own website, ₹1 crore from the marketplace, and ₹2.3 crore from the B2B offline channel.
- COGS accounted for 42% of the total sales, while the gross margin was 48%.
- The company’s marketing expenses were 28%, shipping costs were 10%, and operating expenses were 9% of the revenue, resulting in an EBITDA of 5%.
- The company is fully bootstrapped but has a loan of ₹4.5 crores.
- The company achieved sales of ₹44 crores in FY 21 to 22.
- The projected sales for FY 22 to 23 are ₹100 crores.
Business Model of Snitch
The Snitch business model works in three ways: first, through B2B sales; second, through D2C (direct-to-consumer) sales; and third, by offering reseller opportunities to users.
- D2C: Direct-to-customer is the primary source of their income. Even Snitch claims that it receives 95% of its orders from its own website, recording over 2,000 orders every day from across the country.
- B2B: At first, Snitch started as a B2B business in the marketplace. They primarily received bulk orders for printing t-shirts and other men’s clothing items.
- Reselling: In December 2022, Snitch partnered with Relove for people who want to share their old clothes that are in good condition, while others love to buy vintage fashion. This partnership represents the third source of income in Snitch’s business model.
How Snitch is using technology to shape his brand
Snitch is a forward-thinking entrepreneur who understands the power of technology in shaping his brand. By leveraging the latest tools and techniques, he has been able to create a unique and engaging digital presence that sets him apart from his competitors.
Social Media Marketing
One of the ways Snitch is using technology to shape his brand is through social media marketing. He understands that platforms like Instagram, Twitter, and TikTok provide an opportunity to connect with his target audience in a more direct and personal way. Snitch has developed a consistent social media strategy that includes creating visually stunning content, engaging with his followers, and leveraging the latest trends to stay relevant and fresh.
Augmented reality technology
Another way Snitch is using technology to shape his brand is through e-commerce. He has created an online store that not only showcases his products but also provides an immersive shopping experience. Using augmented reality technology, customers can see what the products will look like in their homes before making a purchase. Snitch has also implemented a sophisticated customer relationship management system that allows him to track customer behavior and preferences, tailoring his offerings to better meet their needs.
Artificial Intelligence & Machine Learning
Snitch has also embraced the power of artificial intelligence and machine learning in shaping his brand. By analyzing data on customer behavior and engagement, Snitch has been able to identify patterns and trends that inform his marketing strategy. He has also implemented chatbots and other AI-powered tools that provide personalized customer support and help streamline his business operations.
Overall, Snitch’s use of technology has enabled him to create a brand that is dynamic, engaging, and responsive to the needs of his customers. By staying ahead of the curve and leveraging the latest tools and techniques, Snitch is positioning himself as a leader in his industry and a force to be reckoned with in the digital world.