Founders & their story

Puneet Sehgal

Shaan Shah

Sachin (Shaan’s Uncle)

Sachin was running the family business, manufacturing apparel for more prominent brands such as Lifestyle and Shoppers Stop. Owning manufacturing units, the duo (Shaan & Sachin) realized how bigger brands were relying on them and decided to leverage their power.

As an experiment, they invested Rs 10 lakh in designing and manufacturing a few samples of denim wear and tried selling them in the market. After getting a good response, they launched their own collection with the name Freakins in 2018.

Later when Nykaa approached them for acquisition, Shaan met with Puneet at Nykaa. Puneet saw the potential in the business & proposed a collaboration to which Shaan agreed & the latter joined them as a co-founder. 

About the company:

Freakins is a well-known clothing business launched in 2018 that sells stylish denim apparel exclusively for women. Their collections are fashionable, stylish, and comfy, making them a national favorite among women. 

Since its inception, the brand has seen tremendous success, and the company has managed to establish a dedicated consumer base across the nation. It has become one of the most popular women’s fashion businesses due to its low prices, extensive size range, and exceptional customer service.

Freakins Jeans Business has taken the process of making clothes to the next level by changing the market with lifestyle innovations and making a product that is meant to be part of everyone’s everyday life. They have processed 2.5 lakhs+ orders since their launch. 

Their motto, “Stitch to Connect,” shows how much they care about making clothes that fit well and give women the power to combine fashion and comfort.

Revenue: 

They generated Net Sales of Rs. 90 lakhs in FY 19-20 and Rs. 6.7 crores in FY 20-21, which then increase to Rs. 10.4 crores in FY 21-22.

Average Monthly Net Sales in FY 22-23 is Rs. 90 lakhs.

Their Gross Margin is 63%, and in September ’22, their gross sales were Rs. 1.95 crores, of which the net sales were Rs. 1.05 crores. 

They have lost Rs. 2.1 crores in FY 20-21, Rs. 3.8 crores in FY 21-22 and Rs. 60 lakh in 6 months in FY22-23.

Founder’s Ask

Rs. 70 lakhs for 1% equity at a valuation of Rs. 70 crores. 

Offers: 

Vineeta gave a conditional offer of Rs. 50 lakhs for 2.5% equity & Rs. 20 lakhs debt @12% interest at a valuation of Rs. 20 crores. 

(Condition: This investment will be a part of a bigger investment round)

Founder’s Counter Offer

Rs. 50 lakhs for 2% equity & Rs. 20 lakhs debt @12% interest at a valuation of Rs. 25 crores. 

Final Deal 

Vineeta didn’t accept the counteroffer, so the deal was done at Rs. 50 lakhs for 2.5% equity & Rs. 20 lakhs debt @12% interest at a valuation of Rs. 20 crores with a condition; the investment will be a part of a bigger investment round.