Sudathi targets Rs 100 crore ARR by FY26-end

16 August 2025, Mumbai 

Direct-to-consumer saree brand based in Surat, Sudathi is targeting a significant increase in its annual recurring revenue (ARR), aiming to reach Rs 100 crore by FY26-end. This ambitious goal is driven by a strategic focus on expanding its presence in Tier-II and Tier-III cities, particularly during the upcoming festive season.

The company is banking on the rise in demand during the August-November period, which includes major festivals like Raksha Bandhan and Diwali, as well as the wedding season. To meet this demand, Sudathi has already stocked over 3.5 lakh sarees.

Sudathi's business model has found strong success in non-metro areas, with these markets accounting for 70 per cent of its customer base. The company's goal is to make traditional saree shopping culturally rooted and operationally seamless for customers outside of major cities.

To handle the increased volume and reduce delivery times, Sudathi has activated three new fulfillment centers and plans to add more in major cities like Delhi, Bengaluru, and Mumbai before Diwali. The company aims to cut delivery times by 20 per cent through new regional logistics partnerships.

Launched in 2023, Sudathi differentiates itself from traditional ethnic wear brands through a tech-driven, affordable, and fast-fashion model. It sources directly from manufacturers to keep costs low and has a ‘just-in-time’ inventory system to respond quickly to trends. The brand is also known for its ‘Saree Saturday’ model, which launches 100+ new styles every week, and its ready-to-wear sarees that appeal to Gen Z and working professionals.

Since its launch, the brand has generated Rs 80 crore in revenue. It also gained significant recognition and investment on Shark Tank India, securing a deal with Anupam Mittal, Peyush Bansal, and Aman Gupta.

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