From A Small Shop To A ₹2500 Crore Fashion Empire: The Snitch Story
This is the incredible journey of Siddharth Dungarwal, a young man who transformed a small surplus clothing store into Snitch, one of India's biggest D2C menswear brands, now valued at ₹2500 crore. His story is a testament to taking bold risks and turning challenges into opportunities.
Key Takeaways
- Start Honest, Not Perfect: Don't wait for perfection; begin with honesty and learn as you go.
- Speed is Your Edge: Moving fast helps you overcome obstacles you might not even notice at slower speeds.
- Obsession Drives Growth: Be intensely focused on your customers, your team, and your brand.
- Belief is Foundational: You must believe in yourself and your vision to convince others.
- The Right Team is Rocket Fuel: A strong team that shares your vision can propel your business forward.
The Humble Beginnings
Siddharth Dungarwal started his entrepreneurial journey at just 17. Coming from a middle-class family, he initially helped his father in his jewellery business but soon realised his passion lay elsewhere – in building a business. While his friends were out partying, Siddharth was busy understanding consumers.
He began with a small retail store selling surplus clothing. This was a challenging period, a real low point where he had invested everything he had. He juggled college with running the store, and eventually, his dedication led him to drop out of college as his business demands grew.
A Risky Bet That Paid Off
In 2012, Siddharth faced a significant opportunity: a chance to buy surplus fabric worth ₹25 lakh. He had a buyer ready, promising a ₹5 lakh profit. With only ₹2.5 lakh in savings, he borrowed the rest from friends and family. However, a factory audit delayed the shipment by 45-50 days. The buyer backed out, leaving Siddharth stuck with a large quantity of fabric and no place to store it.
This was a critical moment. He cut small swatches of the fabric and sent them to retailers, hoping for a solution. A Mumbai-based retailer saw potential and asked if he could make shirts. Despite having no prior knowledge of stitching, Siddharth took on the challenge. He spent weeks in a small factory, learning the entire production process from cutting to stitching.
He produced 200-300 shirts and sent them to Mumbai. They sold out quickly. This experience taught him that manufacturing was a much larger business and that obstacles could indeed be turned into opportunities. This bold risk eventually led to him making ₹6.5 lakh from the fabric, a significant turnaround.
From B2B to D2C: The Birth of Snitch
From 2012 to 2019, Siddharth ran a buying house, designing, manufacturing, and delivering products for various Indian and international brands. However, he always dreamed of launching his own brand. He observed how international brands like H&M and Zara were disrupting the traditional fashion retail model in India by offering frequent new collections.
He realised that for a fashion brand to succeed, it needed to be vertically integrated, controlling its supply chain. In 2019, he launched Snitch, initially as a B2B brand. They created a simple app for retailers, allowing them to order as little as 25 pieces daily with cash on delivery. This model was a huge success, providing retailers with flexibility and eliminating the need for them to predict future sales.
Navigating the Pandemic and Going Online
The COVID-19 pandemic in March 2020 brought everything to a halt. With significant inventory and offline sales shut down, Siddharth faced another crisis. Instead of liquidating stock on marketplaces, he decided to pivot. In 2020, Snitch was relaunched as a D2C online brand with just 35 products and a small team.
This marked the beginning of a roller-coaster ride. They learned everything from running ads to setting up websites and managing logistics through the internet. They focused heavily on customer experience and building great content. Even during lockdowns, they ensured products were delivered, prioritising customer happiness. Siddharth himself once delivered an order on his bicycle to ensure it reached a friend as an important gift on time.
The Shark Tank Effect and App Launch
In 2021, Siddharth applied for Shark Tank India. After a gruelling audition process, he appeared on the show and secured deals from all five sharks, with the brand valued at ₹100 crore. Shark Tank provided immense recognition and built crucial trust with consumers.
Following this success, Snitch launched its own app, aiming to be as close to customers as possible. The app has since become a major revenue driver, with over 4 million downloads and 70% of revenue coming through it.
Expanding into Retail
Despite the online success, Siddharth decided to venture into physical retail. In 2023, he opened Snitch's first store in Bengaluru. The store was an instant hit, generating ₹50 lakh in revenue within its first 15 days and reaching ₹1.5 crore in monthly sales by December. This success validated the brand's strong consumer love and led to an expansion, with Snitch now operating over 80 stores across 30 cities.
The Core Principles of Snitch's Success
Siddharth attributes Snitch's rapid growth to four key principles:
- Speed: Moving quickly allows the business to overcome challenges without getting bogged down.
- Obsession: A deep focus on consumers, the team, and the brand itself.
- Belief: Unwavering self-belief and the conviction to make a mark.
- Team: Having the right team that can execute the vision.
From a small shop with a team of four, Snitch has grown into a major brand with over 1400 employees and a vast network of factories. Siddharth's message to aspiring entrepreneurs is to start honestly, learn from mistakes, and embrace speed. He believes India has the potential to create global brands, and entrepreneurship is key to its future as a superpower.
