RATING

RECOMMENDATION

Strong Buy

  • ROFR Required
  • Available in Depository:

  • NSDL

  • CDSL

  • Available for Investment:

  • Primary

  • Secondary

RATING

RECOMMENDATION

Strong Buy

Business Type

Startup - Growth Phase

RATING

RECOMMENDATION

Strong Buy

Business Type

Startup - Growth Phase

Discover and get a complete analyzed report on Madbow Ventures Pre IPO - Management, Business Model, Financials, Growth, Valuations, Funding Rounds, News and get latest updates on Madbow Ventures Revenue Growth.

ISIN

INE0JKD01022

Face Value

₹1.00

Total Share

4,70,000

Total Income

₹1,737.94 L

Profit After Tax

₹19.90 L

EPS

₹4.23

P/E

12.77

P/B

4.85

Market Capitalisation

₹2.54 Cr

Enterprise Value

₹4.95 Cr

Book Value

₹11.13

Intrinsic Value

₹452.06

Earnings Yield

7.83 %

Sector

Consumer Discretionary

Sub-sector

Apparel & Accessories

Category

Start up Funding

Cashflow - Operations

-₹27.78 L

Cashflow - Financing

₹79.20 L

Madbow Growth

Compounded Sales Growth

  • 18.94%

    1 Year

  • 51.95%

    2 Year

  • 155.11%

    3 Year

Pro Only

Compounded Profit Growth

  • 76.46%

    1 Year

  • 166.35%

    2 Year

  • 105.53%

    3 Year

Pro Only

Return On Equity

  • 38.03%

    2021

  • 71.68%

    2020

  • 32.27%

    2019

Pro Only

About Madbow

  • Madbow Ventures Limited is an Indian e-commerce lifestyle fashion brand that makes creative, distinctive fashion for the trendy & contemporary women. 
  • They are primarily involved in selling of ready-to-wear garments, footwear and lingerie for women through their build business vertical-specific niche websites for different consumer needs. They have a diverse portfolio of lifestyle products like footwear, western wear, ethnic, and other fashion products, including their owned brand products manufactured by them. Their brands, Streetstyle stalk for value based fashion products that cater to masses, Slaydeal as a deal site and our audience get all sort of Deals on the platform and Stalkbae for premium designs for women and the other 2 brands, Flatoes and Kalihouse are for women footwear.
  • The sell the products via online channels include mobile applications, websites and mobile sites. As of March 31, 2021, they had cumulative downloads of 500K across on mobile applications and during the FY21, 86.7% of their online GMV came through mobile phones.
  • It does its operation under inventory-led retailing business model. The platform take cares of the whole process end to end, starting with product purchasing, warehousing and ending with product dispatch. 
  • The number of units placed on their platform is largely driven by base of the consumers, mix of products and brands that are sold on platforms. The number of units has grown from 4 Lac in the FY19 to 5.5 Lac in the FY21 for the products in all categories.
  • They have created retail tech which helped them to scale and diversify into multiple channel and able to grow with 100% rate year on year. This enabled their operations to run smoothly which they have named SSTE : Systematic Solutions to E-commerce
  • The company was incorporated on 13th June 2017 with their registered office at Gurugram, Haryana. Madbow Venture Private Limited Company was formerly known as Madbow Fashion Private Limited on July, 2021.
  • They have turned PAT positive during the year due to growth in revenue and prudent cost management. The company grew by 35.2% over the previous year in terms of GMV – the total of which was Rs.320 Million with Rs.190 Million from footwear and Rs.130 Million from garments.

  • Madbow IPO Details

Currently, Company has no plan to raise funding through IPO

  • Madbow Subsidiaries

The company has no subsidiaries/joint ventures

Madbow Business Model

  • Company has diverse portfolio of lifestyle products like footwear, western Wear, ethnic, and other fashion products, including their owned brand products manufactured by them. As a result, they have established ourselves not only as a lifestyle retail platform, but also as a popular consumer brand selling on our niche websites as well as on marketplace. They offer consumers an omni channel experience with an endeavours to cater to the consumers’ preferences and convenience.
  • Their online channels include mobile applications, websites and mobile sites and upon which they led to build business vertical-specific niche websites like - Streetstlestalk.com - Value based fashion products that cater to masses, Slaydeal.com - Very much a deal site for audience to get all sort of deals on the platform and Stalkbae.com - Premium websites with ticket size of more than 1500 to 2000 INR. These independent channels allow them to tailor their content and curation optimally for the convenience of consumers and to cater to the different consumer journeys that exist in these business verticals. 
  • Madbow Revenue Segmentation

  • Sales of apparel and accessories
  • Other Income
  • Madbow Product & Services

  • Footwear
  • Apparels
  • Lingerie
  • Madbow Assets

  • In FY21, the company owns ~ Rs.60 Lakhs worth of tangible assets.
  • In FY21, the company owns ~ Rs.3 Lakhs worth of intangible assets.
  • Madbow Industry Overview

Industry Statistics

  • India’s textiles sector is one of the oldest industries in the Indian economy, dating back to several centuries. The industry is extremely varied, with hand-spun and hand-woven textiles sectors at one end of the spectrum, while the capital-intensive sophisticated mills sector on the other end. The decentralized power looms/ hosiery and knitting sector forms the largest component in the textiles sector. India’s textiles industry has a capacity to produce wide variety of products suitable for different market segments, both within India and across the world.
  • E-commerce has transformed the way business is done in India. The Indian E-commerce market is expected to grow to US$ 111.40 billion by 2025 from US$ 46.2 billion as of 2020. By 2030, it is expected to reach US$ 350 billion. 
  • The discretionary portion of the retail market was sized at ₹21 trillion in 2019. Fashion and BPC combined, accounted for 35% of the discretionary retail space in India in 2020.
  • The growing popularity of online shopping has also supported market growth in recent years. Customers have been won over by the convenience, variety and cheaper prices which online apparel retailers can offer. This has led to an increase in the number of online specialists in the market, which now generate 16.5% of its total value. This trend has been further accelerated by the COVID-19 pandemic as customers increasingly turn to online platforms whilst physical clothing stores are closed. Nevertheless, internet penetration in India is relatively low, with just 34.4% of the population classified as internet users by the World Bank. This suggests that there is ample room for growth, particularly as the government embarks on plans to strengthen the country’s fiber optic infrastructure in the coming years. 
  • The size of the fashion market in India was ₹5,838 billion in 2019. It declined by 35% in 2020 during the first COVID-19 wave, driven by the reduction in discretionary spending and disruption in supply chain due to the lockdown. The Fashion Market in India is projected to recover strongly. Apparel is projected to continue driving approximately 73% of the market in 2025. 

Future Prospects

  • India e-commerce is expected to reach US$ 99 billion by 2024, growing at a 27% CAGR over 2019-24, owing to consumers increasingly developing a preference for online shopping, fuelled by cheaper data and higher mobile penetration across the country. With grocery and fashion/apparel likely to be the key drivers of incremental growth.
  • E-commerce players continue to invest in technology to cater to the growing number of customers. Cutting-edge technologies such as AI/ML, IoT and big data analytics, are helping in application of chatbots, image recognition and recommendation engines which are contributing towards better customer services. 
  • The online retail market in India is estimated to be 25% of the total organized retail market and is expected to reach 37% by 2030.
  • Driven by lower data rates and investments to enhance customer experience, the Indian e-retail witnessed a rapid increase in shopper penetration, as online platforms are innovating to onboard the next billion of shoppers.
  • There are lot of opportunities for e-retailers in India to capitalize upon with the gradually growing internet penetration in India as online shoppers in India are expected to reach 220 million by 2025

Government Initiatives

  • Government’s initiatives for cashless economy, broadband connectivity and regulatory changes such as the Consumer Protection Rules 2020 have helped build an ecosystem that supports e-commerce.
  • It is taking various initiatives to boost the e-commerce sector in the country such as Start-up India, Digital India, Skill India, Innovation Fund and BharatNet (to grow rural broadband penetration). Various regulatory reforms such as new draft e-commerce policy, the national retail policy and consumer protection rules 2020 showcase the government’s inclination towards building this sector further.

Madbow Strengths

  • Retail tech - They have created retail technology which helped them to scale and diversify into multiple channel and able to grow with 100% rate year on year (y-o-y). They have included all the features into tech which enables their operation to run smoothly. They have named this solution SSTE : Systematic Solutions to E-commerce, which helps them in warehouse management, order management, customer service management and daily reports which improves the efficiency in place.
  • Covid management - Agility of the company to both manage lockdown restrictions as well as bring in newer and relevant SKUs played a significant role in this profit growth. The company offered approximately 500 SKUs from 87 brands to its consumers across business verticals which helped them in the inventory management as the business itself is inventory led retailing.
  • Consumers - They have built business vertical-specific niche websites for specific consumers like slaydeal.com that is very much a deal site on the platform, streetsyletalk.com that have value based fashion products that cater to masses and stalkbae.com that have premium products with ticket size of more than Rs.1500 to Rs.2000. 
  • Strong online channels include mobile applications, websites and mobile sites. As of March 31, 2021, they had cumulative downloads of 500K consumers across all mobile applications and during the FY21, 86.7% of their online GMV came through mobile phones.
  • Sales - Retaining existing consumers and cultivate loyalty, including through increasing repeat purchases which was 70% in FY21, growth rates have primarily been driven by the growing popularity and recognition of the brands, increasing assortment of products and stronger consumer engagement.
  • Platform - They maintain a cost-effective platform, which depends on a number of factors such as, the efficiency of sales and marketing initiatives, fulfilment process and continuous investment to develop their technology for improvement in operational effectiveness.
  • Market - The size of the fashion Market in India was ₹5,838 billion in 2019. The fashion market in India is projected to recover strongly.  Apparel is projected to continue driving approximately 73% of the market in 2025 which provides a great opportunity for the all the retailers. 


Madbow Shortcomings

  • Website - Madbow's website-madbow.com is currently under maintenance and not prepared fully which is a major shortcoming for an e-commerce company as they can not increase the traffic on their website which can reduce the opportunity to increase the sales using digital marketing.
  • Strong Social Media Interaction: Madbow is unable to attract many social media users as potential customers due to lack of running online campaigns, contests or magazines.
  • Less advertisement expense than the competitors led to limited ability to attract new consumers on the platform. Share of new consumers on the platform has reduced from 34% in FY20 to 30% in FY21. As the success of the fashion business is to attract new customers with increasing share of online shoppers in the economy.
  • No offline presence in the market which makes the products available to only computer literate people which reduces the opportunity to increase the sales as well as raising brand awareness among the prospective customers.

Madbow Opportunities

  • Changing Trends - The changing needs, tastes, and preferences of customers can be an opportunity if the company has good market knowledge.
  • Technology - The development of new technologies to support the production and delivery process of products/services can be used to integrate innovation into business operations. Advanced technology integration can reduce costs, improve efficiency, and lead to the rapid adoption of innovative products.
  • Social media growth can help Madbow to reduce the cost of entering new market and reaching to customers at a significantly lower marketing budget. It can also lead to crowd sourcing various services and consumer oriented marketing based on the data and purchase behaviour.
  • Consumer - Rise in the customers’ disposable income and increase in the affluent customer base can be taken as an opportunity to introduce more high-end products.
  • Reduction in the interest rates makes the fund raising and financing at lower cost easier for the business organization.

Madbow Threats

  • Competitors - The fashion retail market is a fragmented market with the presence of various major and smaller players in the market. The market in the developing regions has a strong unorganized market offering a wide array of products. The outspread distribution network of global brands has an influence in the international markets but faces a steep competition at the hands of local manufacturers with respect to regional fashion preferences and prices.
  • Changes in environment, law and regulations - Change in trends, fashion and fad can distress e-commerce side by side change in law and regulations can also affect it.
  • Innovation - Customers now a days are always in a search of innovative products and technique. Innovation will always work as an extra burden on the pocket of consumer, be either in product, place, promotion and even price.
  • Privacy concerns - Fears that information can be misused lead to spam e-mail or identity fraud.
  • No direct interaction - In e-commerce there is no direct interaction between customer and the seller. There is no scope of bargaining. People prefer to buy physically as compare to online to experience personal feel.
  • Fraud - Persons using unfair means to operate e-commerce can damage the confidence and faith of common people.
  • Risk - Nature of fraud
Madbow Rating

  • RECOMMENDATION

    Strong Buy

  • Madbow Detail Info

Industry Statistics

PUBLIC LIMITED

Registered In

India

last Updated

14/12/2021

Registered Date

13/06/2017

Planify Ticker

MVL

Reg Office: 2ND FLOOR GM-72, DLF PHASE-IIGURGAON, Gurgaon-122001

Visit Website

Frequently Ask Questions

The company has expressed no intentions of an initial public offering as of now.

Face Value is Rs. 10

Yes, the company is expected to generate decent profits in future.

The major shareholder of Madbow Venture Limited is Naveen Mahlaawat

Naveen Mahlawat is the owner of the company.

Short Term Gain Capital Tax - Less than 2 year - 30%, Greater than 2 year then 20% tax + Indexation.

Strength - Retail tech - They have created retail technology which helped them to scale and diversify into multiple channel and able to grow with 100% rate year on year (y-o-y). They have included all the features into tech which enables their operation to run smoothly. They have named this solution SSTE : Systematic Solutions to E-commerce, which helps them in warehouse management, order management, customer service management and daily reports which improves the efficiency in place.

The minimum holding period after the company has been listed is 6 months. 


Total Profit of the company is Rs. 19.9 Lakhs.

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This new SEBI rule was introduced in the month of August-2021, wherein the SEBI has reduced the lock-in period previously from 1 year to 6 months to encourage more and more funds to be invested in startups which are going to public or IPO in near future. Reduction of lock-in is seen as big step and after that many PMS funds are advising their clients to invest in Pre-IPO shares to get the benefit of early stage investment.

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• 1.You can download the NSDL or CDSL application from google play-store and check. If you want to check whether your stock broker is registered with NSDL or CDSL then check the following procedure.
• By carefully examining the number format of Demat Account we can easily identify whether the stock broker is registered with CDSL or NSDL.
• Demat Account = DP ID + Client ID. (16 Characters )
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• Example:
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We at Planify do the valuation based on 2 methods.
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As an investor in the unlisted space, we would always recommend that you must check all the risk parameter carefully before investing in the unlisted space.

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