Libas, a D2C ethnic wear brand, has secured INR 150 Cr in a strategic funding round from ICICI Ventures, the alternative investment arm of ICICI Bank.
The funds will be utilized to expedite offline expansion across various regions and enhance the presence of its exclusive brand and retail outlets in major metros as well as Tier-1, 2, and 3 cities.
Sidhant Keshwani, CEO of Libas, mentioned that a significant portion of the funding will also be allocated towards strengthening the platform’s technological infrastructure and increasing investments in marketing efforts.
Keshwani emphasized, “This funding will drive growth across various product categories and regions, prioritizing an enhanced omnichannel experience. Our partnership with ICICI Ventures, backed by their proven track record and managerial proficiency, seamlessly aligns with Libas’ goal to transform the Indian ethnic wear market.”
Continue Exploring: Bootstrapped ethnic fashion brand Libas surpasses INR 500 Crore revenue milestone in FY24; eyes 60-70% growth and seeks first round of funding
Gagandeep S Chhina, senior director of private equity at ICICI Ventures, remarked on the fundraising, stating, “Libas has exhibited industry-leading growth attributes in a capital-efficient manner and intends to fortify its digital footprint while emphasizing offline expansion and omnichannel capabilities within the Indian market.”
This marks the first instance of external funding for the fast-fashion ethnic wear brand, with the investment coming from ICICI Ventures’ IAF Series 5 fund.
Assuming the role from his father, Keshwani led Libas’ online debut in 2014. Presently, Libas has evolved into an omnichannel brand offering fast-fashion Indian traditional attire for women through both offline and online avenues.
According to Keshwani, 15% of Libas’ sales are generated through its website, while marketplaces such as Myntra and Amazon make up 70% of its overall revenue. The remaining 15% originates from offline channels.
The startup asserts that it achieved a revenue of INR 500 Cr in the financial year 2023-24 (FY24).
Expansion Plans for Exclusive Brand Outlets
Keshwani mentioned that the brand launched 15 exclusive brand outlets (EBOs) over the past year and now aims to expand by adding 200-250 outlets within the next 2.5 years. It targets achieving an annual revenue of INR 1,000 Cr by the end of the upcoming fiscal year.
Libas is counting on the growing ecommerce adoption in the country, supported by affordable internet prices and increasing smartphone penetration. Reports estimate that the number of online shoppers in India will exceed the 500 million mark by 2030.
Continue Exploring: Ethnic fashion brand Libas partners with GoKwik to strengthen D2C presence and drive growth
E-commerce Sector Attracts Increasing Investments
Consequently, the e-commerce sector has become a favored destination for both investors and entrepreneurs. Just recently, D2C menswear brand DaMENSCH secured INR 21.62 Cr in an extended Series B round from existing investors including Matrix Partners and Saama Capital.
Earlier this week, Lyskraft, an omnichannel fashion startup founded by former Zomato senior executive Mohit Gupta and Myntra founder Mukesh Bansal, raised $26 million in a seed funding round led by Peak XV Partners.
Central to all of this is the indigenous fashion e-commerce market, forecasted to exceed the $112 billion mark by 2030, as per reports.
Continue Exploring: Menswear brand DaMENSCH raises INR 21.62 Cr from existing investors