Bagzone Lifestyles, the parent firm of the fashion accessories label Lavie, secured $9 million in funding from the First Bridge India Growth Fund.
As per the company’s statement, this collaboration assists in establishing the company as a frontrunner in the fashion accessories sector. Given the handbag market’s proximity to INR 10,000 crore, the company asserts its market share to be in the range of 5–10 percent.
The company intends to utilize the funds for expanding its in-house manufacturing capabilities, setting up a 150,000 square foot facility. Furthermore, it envisions broadening its offline footprint through the inauguration of 300 exclusive brand outlets.
Further, “we are planning to introduce a new product category by the end of this year. The production for this category is still in its initial stages,” Ayush Tainwala, CEO of Bagzone Lifestyles, said.
“We are very excited to partner with First Bridge. They come with a long track record of building many successful consumer businesses. We hope to grow 10X in the next few years and become a multi-category, multi-brand business,” Tainwala added.
During the fiscal year 2023, it achieved customer sales totaling INR 500 crore.
At the same time, it seeks to attain a 70 percent localization rate in its procurement initiatives, all the while increasing its physical store footprint. As a consequence of this growth strategy, it anticipates generating employment opportunities for 1,000 people across the country, thereby making a direct contribution to the nation’s economic advancement. Moreover, it plans to enter Tier-2 and Tier-3 markets.
Managing Partner of First Bridge, Vishal Kumar Gupta, said, “The company operates in a market that will benefit from the shift to organised and an exponential increase in women’s consumption in the next few years. We are confident of a successful journey of hyper-growth with team Lavie.”
As per a recent Statista survey, the handbags sector in India is expected to achieve a revenue of $4.19 billion in 2023, projecting an estimated annual growth rate of 6.14 percent from 2023 to 2026 (CAGR 2023–2026).