D2C luggage brand Mokobara has raised $12 million (INR 100 crore) in its latest round of funding led by Peak XV Partners (formerly Sequoia Capital India), at a valuation of $80 million post-money.
In September 2023, ET was the first to report on a potential investment of $12-15 million in Mokobara, led by Peak XV Partners, at a valuation ranging from $65 to $80 million.
In the Series B funding round, Mokobara’s current supporters, Sauce VC and Saama Capital, have also joined in. According to regulatory filings with the Registrar of Companies (RoC), of the $12 million raised, approximately $9.4 million has been contributed by Peak XV Partners, with the remaining portion invested by the other two backers.
Established in 2020 by ex-Urban Ladder executives Sangeet Agrawal and Navin Parwal, Mokobara, the luggage and travel accessories brand, has accumulated a total funding of $20 million, encompassing the most recent round. The previous funding round in October 2023 saw Mokobara raising $3.6 million from Sauce VC and Saama Capital.
Continue Exploring: Mokobara’s operating revenue soars fourfold to INR 53 Crore in FY23, despite a 78% increase in losses
On its cap table, the Bengaluru-based startup also includes Varun Alagh, the cofounder and CEO of Mamaearth, Ashish Goel, the founder and CEO of Urban Ladder, and Ramakant Sharma, the founder and COO of LivSpace.
Operating within the mid-premium segment, Mokobara competes with a range of players, including established brands like American Tourister and emerging startups such as Nasher Miles.
As per a research note from Crisil in August 2023, despite a high-base effect of 40% growth in the previous fiscal year, India’s luggage industry revenue is projected to increase by approximately 15% year-on-year in the current fiscal year. This growth is attributed to the increasing adoption of hard luggage manufactured by the organized sector, alongside sustained expansion in tourism and corporate travel.
Mokobara’s fundraise comes at a time when risk capital investors are increasingly turning towards consumer brands away from tech companies owing to high valuations commanded by technology startups.
A New Delhi-based investor specializing in consumer-focused ventures emphasized that while India’s consumption narrative has consistently thrived, the tech sector’s acceleration has been propelled by the influx of billions of dollars from venture investors specifically targeting technology. Nonetheless, India’s consumption indicators remain resilient.
“For investors, the thesis is very clear. In any sector, there is enough space for consumer brands to scale and become large…India also has enough number of large brands across categories and segments that can come in as strategic investors opening up an exit route for early-stage investors,” the person added.
Continue Exploring: Mokobara Secures $3.6M Investment for Expansion from Current Investors!