Children's footwear brand Aretto is targeting ₹100 crore in revenue by FY2027, up from its current annual recurring revenue of above ₹60 crore. According to reports from Business Standard, the company plans to expand its retail footprint to more than 100 touchpoints from the current over 80 retail touchpoints. The brand, founded by MIT Institute of Design graduate Satyajit Mittal, launched in 2022 as an online-first direct-to-consumer (D2C) brand and opened its first retail store in 2023.
The broader Indian footwear market is valued at approximately ₹1 trillion, of which children's footwear accounts for 12 to 13 per cent. As reported by Business Standard, the market is growing at about 8 to 9 per cent, driven roughly 70 per cent by offline sales and 30 per cent or less by online sales. Aretto is targeting premium consumers in Tier-2 and Tier-3 cities, where fewer brands are available, as only 30 per cent of India's premium-product audience lives in the country's top 30 cities, while 70 per cent live in Tier-2 and Tier-3 cities.
The company's core innovation is the patented Supergrooves™ expandable sole technology, which adapts to a child's growing feet. According to Business Standard, Aretto has sold more than 4,00,000 pairs with a repeat purchase rate of over 25 per cent. The D2C business is growing 2-times year on year, with the online-offline channel mix divided equally. The company has incorporated artificial intelligence across research and development and business analytics, cutting the time needed to design and produce a 3D-printed prototype from four to six weeks to about three to four days. AI tools are also used to analyse advertising performance, consumer sentiment, demand trends, and store performance.
Beyond India, Aretto's design patents have been secured across international markets, including the United States, Japan, and Brazil. As reported by Business Standard, patents for other global markets are underway. The company has attracted backing from investors such as Peak XV Surge and Veltis Capital. Aretto expects India to remain a key production base, manufacturing and exporting footwear to overseas markets, with plans to explore markets such as the US, Europe, China, Japan, and the Middle East.
The company's adaptive technology platform and patented design architecture create a strategic pathway into adjacent segments, including adult footwear. According to Business Standard, Aretto plans to stay ahead of larger footwear brands through continued product development, with Mittal noting that technology would be central to addressing the challenge of different foot shapes requiring the same standard shoe size. The company aims to become a global innovation-led footwear brand over the next 5-10 years, with growth strategy resting on three pillars: product innovation, distribution and brand-building.
