Safari Industries (India), a prominent luggage brand, has raised INR 229 Crore (around $27 million) in fresh funding from the growth-stage venture capital firm Lighthouse‘s fourth alternative investment fund (AIF).
According to the official statement, this marks the second investment made by Lighthouse in the company.
Last week, Lighthouse invested INR 284 Crore in Kushal’s, facilitating a partial exit for its initial institutional investor, India SME Investments.
Lighthouse’s portfolio includes companies such as Bikaji Foods, Nykaa, Duroflex Mattresses, Fabindia, Ferns N Petals, Cera Sanitaryware, Dhanuka Agritech, Kama Ayurveda, and Kushal’s Retail.
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Safari’s chairman and MD Sudhir Jatia said, “Indian luggage market still remains highly unorganised, and we intend to leverage Lighthouse’s experience in building high-quality brands as we penetrate deeper into the Indian market.”
Safari produces and sells a wide variety of luggage bags and backpacks. The company boasts over 800 stock keeping units (SKUs) and a network of 9,300+ customer touch-points across online and offline platforms.
Media reports indicate that last year, the company provided an exit opportunity to one of its investors, Investcorp, achieving an impressive internal rate of return (IRR) of 102%. The total return for the investor stood at INR 285 Crore, resulting in a remarkable 3.8x multiple on the initial investment of INR 75 Crore.
Safari competes with VIP, American Tourister, as well as startups such as Mokobara, Nasher Miles, etc.
The announcement follows closely after Mokobara, its competitor, successfully secured $12 million in funding led by Peak XV Partners, elevating the startup’s valuation to $80 million. Mokobara currently operates numerous stores in Bengaluru, Delhi, Mumbai, and Pune, with plans to expand further by opening an additional 25 stores by April of this year.
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As of 2024, the Indian luggage industry market is valued at $15.05 billion, with a projected compound annual growth rate (CAGR) of 5.21% expected by 2028, according to a market study.