Direct-to-consumer (D2C) fashion and lifestyle brand Zouk has raised $10 million in a funding round led by Aavishkaar Capital.
Existing investors Stellaris Venture Partners, Titan Capital Winners Fund, Sharp Ventures, and JJ Family also participated in the round.
The funds will be used to expand the network of luxury brand retailers, strengthen marketing and supply chain capabilities, and invest in talent recruitment.
The brand currently operates four brand specialty stores, and aims to open a total of 75 stores over the next two to three years.
Founded in 2016 by Disha Singh and Pradeep Krishnakumar, the Mumbai-based brand offers bags, wallets and shoes. The company is known for producing Peta-certified bags and other products made from “vegan leather.”
“Right now, the majority of our business (90%) is online. It’s only been a year since we opened our first store, so the offline segment is still small. But offline is doing well and we have a lot of future prospects. That’s why we want to leverage this opportunity further,” Krishnakumar told ET.
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In the online space, the company sells its products through D2C websites, marketplaces, and quick commerce. “From a distribution perspective, we’re developing a whole marketplace business. Quick commerce is something very new to us, and it’s also very exciting because it’s great for both self-consumption and gifting. “We’ve seen it work very well in the early stages, and we believe it will scale very quickly,” he said.
“In terms of collections, we are looking to significantly expand our offerings, including handbags, backpacks, totes and luggage,” Krishnakumar added.
The brand claims to have over 700,000 customers across India. This year, we entered the luggage market with backpacks and trolley bags. Participating companies in Luggagespace include Mokobara, backed by Peak XV Partners, which raised $12 million earlier this year, Uppercase, backed by Accel, and Safari Industries, backed by Lighthouse Funds.
India’s online lifestyle market is expected to reach $40 billion to $45 billion by 2028, compared to the current size of $16 billion to $17 billion, according to a joint report by management consulting firm Bain & Company and fashion market Myntra. expected to reach.
To date, it has raised a total of $14.5 million.
The previous round was led by Stellaris Venture Partners with participation from Sharp Ventures, JJ Family Office, Deutsche Bank India CEO Dilip Khandelwal, Atomberg founder Manoj Meena, and Sugar Cosmetics founders Vineeta Singh and Kaushik Mukherjee. Raised $3 million.
Commenting on the investment, Divya Gupta, Investment Director at Avishkar Capital, said: “With plans to expand our product portfolio and exclusive branded retail outlets, Zouk has gained a significant share of the fast-growing bag and accessories market. I am confident that we are in a good position to do so.” India. We are confident that our partnership will allow Zouk to continue to innovate and grow, making a lasting impact on the lifestyle sector. ”
“Zouk’s journey and love for customers has been very exciting for us since the early days. The team has demonstrated great capital efficiency in building the business to date and we are looking forward to the coming years. We have bold plans,” said Rahul Chowdhury, partner at Stellaris Venture Partners.
