With a blockbuster listing last year and a sturdy comeback in FY22, Go Colors has wrapped up the first leg of its decade-old journey. Can the women's bottomwear brand continue with its legwork?
Go Colors managed to spread outside Chennai to Bengaluru, Mumbai, Coimbatore, Ahmedabad and Kolkata by March 2014
Image: Madhu kapparath
Bengaluru, July 2014. The taxi was crammed. En route to a restaurant at an offsite, GV Ravishankar was preoccupied with ‘space’. Battling with constricted legroom, the seasoned venture capitalist (VC) at Sequoia India posed a swift question to his young team member. “Does it have enough legs to stand on?” he asked. “Well, they closed FY14 at Rs26 crore,” replied Tejeshwi Sharma, an analyst who met the founders of Go Colors, a women’s bottomwear brand started by the Saraogi family—Prakash Saraogi, Rahul Saraogi and Gautam Saraogi—in 2010. The Chennai-based company, Sharma continued to add muscle to his bony investment pitch, started with churidars and leggings, opened a tiny kiosk of ‘Go Colors’ at a mall in April 2011, and scaled it to over 80 kiosks by early 2014. “I think they have managed to find a strong product-market fit,” he added.
Ravishankar, though, was looking for more answers. “But can it stretch its legs?” the investor continued to probe relentlessly. “I mean, churidars and leggings seem to be highly undifferentiated to an average person,” he quipped, pointing out how Go Colors has to battle with tons of low-priced rivals and copycats. “Can a brand be built around a basic product which does not have any visible bragging rights?” he asked. “In fact, can there be a brand built out of bottomwear?” Ravishankar added another layer of scepticism.
The extent of scale also came under scanner. Despite the fact that Go Colors managed to spread outside Chennai to Bengaluru, Mumbai, Coimbatore, Ahmedabad and Kolkata by March 2014, the scale was still not hefty enough for Ravishankar and his team to reach a consensus. The raging debate carried on for over 40 minutes, the car pulled over at an eatery, and the foodies decided to satiate their hunger pangs. For now, an intriguing and nascent investment opportunity was left on the plate. “It was on the top of our mind though,” recalls the investor.
Meanwhile, back in 2010, Gautam was trying to build a business out of the bottom of the apparel pyramid. The 22-year-old grad finished his college in 2009, joined the family venture of exports, and a year later, the second-generation entrepreneur was taking a stab at stitching a brand out of a product which prolifically dotted the vast unorganised apparel landscape across the country. “I wanted less competition. The idea was to sell the product easily,” recounts the executive director and chief executive officer of Go Fashion, the parent company which retails under the brand name Go Colors. There were two triggers, he explains, to get into the women’s bottomwear business. The first was a nascent shift from sarees and salwar kameez to trendier apparel. Gautam wanted to be well placed to ride the trend whenever it gathered steam. Second, there was no brand in bottomwear. “I could sense that the world of womenswear was about to transform bottom up. Literally,” he says.
The beginning, though, was anything but easy. The young founder started with two products—churidars and leggings—and took the MBO (multi-branded outlet) route to make a dent. After eight months came a realisation. Go Colors didn’t have legs. Neither the brand scaled nor were the distributors across Delhi, Mumbai and Chennai enthused. Gautam now decided to change the strategy. In April 2011, he opened a small kiosk in one of the malls in Chennai. “The idea was to reach out directly to the consumers,” he says, adding that experimenting with a kiosk was more of a pilot.