Archies banks on online push, smaller cities, and overseas markets for growth

Archies Ltd., best known for its greeting cards and gifting products, is pushing deeper into online channels, smaller city retail and overseas markets as it seeks to reorient its business for growth. Much of the optimism is being driven by the company’s digital pivot.

The company’s financials for the June 2025 quarter reflect early signs of recovery. Net sales stood at ₹13.75 crore, up 2.72% from ₹13.38 crore in June 2024. Quarterly net profit rose sharply to ₹0.30 crore compared to a loss of ₹1.02 crore a year ago, while EBITDA jumped 57.58% to ₹2.60 crore from ₹1.65 crore. Earnings per share, however, declined to ₹0.09 from ₹0.30 in June 2024, signalling a mixed but stabilising trend.

Archies has revamped its website, archiesonline.com, with plans to grow it into a gifting marketplace over the next two years. “We have just revamped our website and are going all out. Our major focus will be on our core products, but gradually we will have other gifting brands as well. We should behave like a marketplace for gifting in India,” said Varun Moolchandani, executive director of Archies.

Currently, online sales, including its own site, e-commerce marketplaces and quick-commerce, contribute 5–7% of overall revenue. The company is targeting this share to rise to 15% from the next fiscal. Quick-commerce platforms have emerged as an important driver. Tie-ups with Blinkit, Zepto and Swiggy now deliver Archies’ cards, wrapping paper, stationery and gift boxes in under 10 minutes. “In 10 minutes you are getting everything Archies sells in your home. It’s outstanding,” Moolchandani said, adding that the format has helped greeting cards regain traction as a convenient add-on.

Alongside its digital thrust, Archies is adjusting its offline footprint. Pre-Covid, the company had about 260 stores, but high rentals in large malls and weak profitability led to closures. The strategy now is to expand in Tier-2 and Tier-3 towns, where average ticket sizes of ₹250–300 align better with customer spending power. “Our focus will be B-towns and C-towns more in offline. In Tier-1, the mall rentals are so high you can’t make money,” Moolchandani said. Archies currently caters through around 1,000 touchpoints, including company-owned outlets, franchises, distributors and retailers.

Global expansion is the third leg of its strategy. Since November last year, Archies has entered the Middle East, Sri Lanka, Southeast Asia, the US and Canada, with a focus on NRIs and South Asian communities familiar with the brand. Products tied to Indian festivals such as Rakhi, Diwali and Holi are being positioned as a differentiator. “The whole idea was to take Archies products to places with large South Asian communities who already know the brand. Our pricing is also 7–8 times cheaper than competitors overseas,” Moolchandani said.

The company is cautious in quantifying the growth impact from exports, calling it a “new baby,” but expects the coming festive cycle from Rakhi to Valentine’s Day to establish a baseline for future overseas growth.

Looking ahead, Archies has set a 2030 vision of rebuilding its store count, scaling exports and embedding itself into international marketplaces and retail networks.