Comet, a Bengaluru-based direct-to-consumer (D2C) sneaker brand, is currently in advanced discussions with Elevation Capital and Nexus Venture Partners to raise Series A funding, according to insiders familiar with the matter.
One of the insiders stated, “he upcoming funding round will be spearheaded by Elevation Capital, with continued participation from Nexus Venture Partners, an existing investor.”
The terms of the deal have been finalized, and the funding round will be closed soon, added the sources. However, the exact amount of capital the startup will be raising in this round couldn’t be ascertained.
According to the sources, the D2C startup plans to utilize the new funds for expanding its team and product portfolio, as well as increasing its inventory, among other purposes. Comet currently maintains a workforce of 10-20 employees.
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The startup is also strategizing to initiate the opening of offline retail stores by early next year.
Established in 2022 by former Hotstar executive Utkarsh Gupta and ex-Urban Company executive Dishant Daryani, Comet was officially launched in 2023.
At present, the startup offers sneakers catering to both genders within the price bracket of INR 4,000 to INR 4,500. Additionally, it retails slides and shoe laces. Its primary sales channel is currently its own website.
Earlier, Comet had secured seed funding from Nexus Venture Partners.
Additionally, the startup collaborated with multidisciplinary artist Shantanu Hazarika earlier this year to release limited edition sneakers.
Apart from Comet, the Indian homegrown sneaker market boasts several startups such as 7-10, Neemans, and Rare Rabbit. However, Comet competes directly with brands like Puma, considering its price range.
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Meanwhile, Elevation Capital’s portfolio also includes well-known D2C brands like The Souled Store, Sugar Cosmetics, and Bliss Club.
It’s worth noting that the past few years have witnessed the rise of numerous D2C brands across various sectors in the country. Moreover, these brands are garnering significant interest from investors.
Central to all these developments is the swiftly expanding D2C market. As per a report, D2C stands out as one of the fastest-growing subsectors within the ecommerce domain. Projections indicate that the country’s D2C market is set to achieve a remarkable CAGR of 19%, surpassing $400 billion by 2030.
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