The company’s long-term goal by FY 2035 is to grow Lee, Wrangler, Toys”R” Us and Dockers into Rs 500 crore each.
New Delhi: Bengaluru-based tech and integrated manufacturing retail company Ace Turtle, which operates brands like Lee, Wrangler, Toys “R” Us, Babies “R” Us and Dockers in India, plans to double its revenue to Rs 1,000 crore by financial year (FY) 2027-2028, up from its projected Rs 500 crore sales for the current fiscal year, a company top executive told IndiaRetailing.
“The company’s long-term vision aims to grow each of our brands to Rs 500 crore by FY 2035. To support these ambitious goals, Ace Turtle plans to commence its Series C fundraising round in early 2025,” said Nitin Chhabra, chief executive officer (CEO), of Ace Turtle.
Chhabra revealed that Lee and Wrangler have achieved profitability in FY24, demonstrating the effectiveness of Ace Turtle’s tech-driven approach which includes eliminating middlemen and ensuring price parity across channels, supported by data-driven decisions on product assortment. Since its founding in 2014, Ace Turtle has been at the forefront of integrating technology into retail, initially launching with a software-as-a-service (SaaS) model before transitioning to a licensing and franchise model.
This pivotal shift has led to Ace Turtle becoming the India Franchisee of a raft of well-known global brands including Lee, Wrangler, Toys”R” Us, Babies ”R” Us and Dockers. In FY23, AceTurtle saw its revenue surge over 100% compared to the previous year. On top of that, the Bengaluru-based tech-led retailer managed to grow its topline by 30%, even as the country’s fashion apparel market was reeling under a slowdown, added the top executive.
Over the years, the company’s focus has shifted to supply chain efficiency over the years. It has developed an algorithm to predict sales, achieving up to 88% accuracy. Their next phase involves improving supply chain operations, as they believe retail margins will increasingly depend on supply chain efficiencies.
In addition, the company uses advanced AI systems in stores to track customer behaviour and product performance. It has also developed an in-house app called Connect to streamline store operations, from attendance to training, added Chhabra.
When asked if the company has any plans to move back to the SaaS business, Chhabra said “Not at this stage. We’re still focused on solving our internal problems and increasing our tech development speed. Right now, it’s about building the components we need. We believe we’re ahead of the curve globally, but our focus remains on solving our challenges, not returning to SaaS just yet.”Chhabra discussed the shifting dynamics of retail in India, noting a current sales split of approximately 56% online and 44% offline, with offline sales gaining momentum over the years.
After the pandemic, online sales surged for the company, but in the last year or two, offline has outperformed online, he said. Chhabra said Ace Turtle is also prioritising its data handling and governance. “The company adheres to strict customer consent protocols for handling Personally Identifiable Information (PII), ensuring compliance with emerging regulations,” he said. “As Ace Turtle transitions to a hybrid cloud model, it aims to enhance data security and operational efficiency.”The company relies on the cloud for ease and speed. However, costs remain a significant challenge.
The company is making the entire tech stack cloud-agnostic, currently working with both Amazon Web Services (AWS) and Google Cloud. Chhabra expressed optimism and said tech expenses are bound to come down in future. “I believe costs will continue to decrease, though I do have some concerns about rising cloud costs. That’s something our team is focusing on this year—balancing operational expenses while leveraging technology effectively,” he said.
To tap the burgeoning fashion and lifestyle market in India, Ace Turtle plans to launch a new international brand – that he declines to name yet – in January and intends to introduce one new global brand every year going forward, expanding its portfolio into diverse sectors even beyond fashion.
Chhabra emphasized the importance of technology in streamlining operations and improving customer experiences, positioning Ace Turtle as a pioneer in the evolving Indian retail landscape.“I believe this is the best time to build a business in India.
We want to expand beyond fashion and into other sectors, ensuring our model can last for generations. While we can’t predict the relevance of today’s technology in ten years, we prioritize experimentation and quick adaptation based on consumer behaviour,” said Chhabra.
