Nysaa Retail, which operates a chain of ‘value retail’ stores under the brand name 1-India Family Mart, across eastern and northern India plans to invest 200 crore rupees and open around 100 stores in the next two years, according to a company statement.
1-India Family Mart provides fashion and general merchandise to customers in tier 2 and tier 3 cities and plans to acquire about 12 lakh square feet of retail space by 2020. It currently has 4.25 lakh square feet of retail space.
“Following the opening of the new stores, we expect to record net revenue of about 750 crore rupees in 2019, which will further increase to ₹900 - 1,000 by 2020,” said Jay Prakash Shukla, founder and CEO 1-India Family Mart.
About 50% of the total investment required would be raised through internal accruals and the remaining through debt. Nysaa Retail Pvt. Ltd has recorded more than 60% growth over the previous fiscal, with net sales growing to 235 crore rupees as against 147.5 crore rupees the previous fiscal year.
Earlier this year, Nysaa raised 42.5 crore rupees from private equity firm Carpediem Advisors, It was the company’s first and only external funding round since it was founded in 2012. Currently the company has established 56 stores across Uttar Pradesh, Bihar, Jharkhand, Chhattisgarh and the the northeast.
The retail sector in India contributes to 10% of the GDP. However, lack of innovation and new-age infrastructure has hindered the rise of organised retail in rural areas. To counter this, 1-India Family Mart analyses big data insights accumulated from their customer’s buying habits and trends, according to the statement.
“These insights then give way to their unique growth strategy by anticipating the fashion and lifestyle changes required by their consumers. So far, the company has already implemented this in 35 stores and aims to further gain competitive insights regarding their customers’ frequency of visits, buying behaviour, instant preferences and repetitions via big data.”
