To Expand its Pop Culture Merchandise Offerings, The Souled Store Acquires Redwolf

In an effort to solidify its position as the industry leader in pop culture items, D2C fashion company The Souled Store has announced the purchase of clothing brand Redwolf. The startup did not, however, reveal the deal's financial details.

The goal of the acquisition is to leverage Redwolf's knowledge of fan merchandise to improve the startup's goods and services. Ameya Thakur, Rahul Jaisheel, and Vivek Malhotra founded Redwolf, a clothing company that creates and produces graphic t-shirts and other accessories, in 2011.

The Mumbai-based company claims to have rights for Game of Thrones, Marvel, Disney, Star Wars, Rick & Morty, Peanuts, Breaking Bad, and other properties. Its designs are primarily influenced by popular culture. The founders will now become part of the leadership team of The Souled Store.

Acquisition to Enhance The Souled Store’s Product Offerings

According to a statement from The Souled Store, the acquisition will enable the company to further expand its line of creative products. The next obvious step in achieving Redwolf's goal of providing the greatest pop culture items to the Indian market, according to Malhotra, was the company's merger with The Souled Store.

 Every one of Redwolf's three founders is an avid fan of pop culture and is eager to use The Souled Store's scale to grow the company. Originally founded in 2013 as a branded product apparel brand by Vedang Patel, Rohin Samtaney, Aditya Sharma, and Harsh Lal, The Souled Store later evolved into its present D2C casual wear brand form.

Additionally, it sells items like socks, shoes, trainers and backpacks to clients of all ages. According to Patel, the acquisition will support the company's goal of becoming India's "Home of Pop Culture". The company is eager to work with Redwolf's founders to develop this common goal.

The Souled Store runs about 40 locations in India and has over 200 licenses, including One Piece, Naruto, and Marvel.

Financial Outlook of The Souled Store

Financially speaking, the firm became profitable in the fiscal year that concluded in March 2024 (FY24) thanks to a robust increase in its top line and improved margins. Compared to a loss of INR 16.5 Cr in FY23, The Souled Store reported a net profit of INR 18.2 Cr in FY24.

From INR 233.5 Cr in FY23 to INR 360.2 Cr, its operating revenue increased 54.26%. Membership fees brought in INR 5.2 Cr, with product sales accounting for the remaining revenue. The development coincides with a decline in merger and acquisition (M&A) activity in the Indian startup ecosystem last year.

Only 71 of these transactions were noted in 2024, according to Inc42's research. However, as more and more listed businesses flex their cash, it is anticipated that startup M&As might increase by 58% in 2025. The industries with the highest likelihood of M&A activity include fintech, edtech, e-commerce, AI, and consumer services.