Rockingdeals Circular Economy Limited (RDCEL), India’s leading multi-brand, multi-product off-price retailer, has announced a ₹100 crore investment plan over the next year to accelerate its expansion across India and internationally. This strategic move aims to help the company achieve a revenue target of ₹400-500 crore by FY27, with projected profit after tax (PAT) margins of 10-15%.
The investment, which will be financed through a balanced mix of equity and debt, will fund the establishment of two new supply hubs in Western and Southern India and expand RDCEL’s retail footprint. The company currently operates 24 retail locations and plans to grow this network significantly, targeting over 100 retail touchpoints by FY27 through a mix of company-owned and franchise stores.
Key Initiatives Under the ₹100 Crore Investment Plan:
- East Zone Expansion (₹15 Crore):
After launching its Guwahati warehouse earlier in FY25, RDCEL will further strengthen its presence in the East Zone. The investment will focus on boosting working capital to meet increasing regional demand. - E-Waste Management (₹15 Crore):
- Phase 1 (₹8 Crore): Setting up an e-waste recycling facility in Faridabad with a capacity of 1 metric ton per day, expected to start operations in H1FY26.
- Phase 2 (₹7 Crore): Expanding the facility’s capacity to 2 metric tons per day.
- Pre-Owned Business Development (₹12 Crore):
Funds will be allocated to a joint venture with UTC Digital Technologies (RDCEL holds a 58% stake), focusing on reverse logistics and managing pre-owned inventory. - International Expansion (₹12 Crore):
RDCEL plans to launch operations in Dubai by H2FY25 to cater to strong demand from Middle Eastern e-commerce players. The investment will go towards infrastructure and working capital for this expansion. - Pan-India Expansion (₹43 Crore):
RDCEL will develop warehousing infrastructure and allocate working capital to support operations in South and West India, further establishing itself as a national player by H2FY25.
Retail Network Expansion
RDCEL’s current hubs in North and North-East India support a network of 24 retail locations, comprising both company-owned and franchise stores. The company plans to create new company-owned hubs across all major zones in India, strengthening its supply chain. A robust franchise program will target Tier 2 and Tier 3 cities, aligning with its goal of surpassing 100 retail touchpoints by FY27.
Commenting on the Expansion Plan
Aman Preet, Founder & CEO of RDCEL, stated:
“Our ₹100 crore strategic investment reflects our confidence in the potential of the circular economy and our commitment to sustainable business practices. The positive response from brands and customers reinforces our business model. With our planned expansion into e-waste management and deeper market penetration, we aim to create significant value for stakeholders while contributing to a more sustainable future.”