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Economic Times
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Fashion and lifestyle brand Zouk raises $10 million in round led by Aavishkaar Capital
- Zouk, a Mumbai-based direct-to-commerce (D2C) fashion and lifestyle brand, has secured $10m after a funding round was led by Aavishkaar Capital. Existing investors such as Stellaris Venture Partners, JJ Family, Sharrp Ventures and Titan Capital Winners Fund also joined the round. The funds raised will be used to expand the brand network of exclusive outlets, investing in talent recruitment, and to strengthen marketing and supply chain capabilities. Zouk plans to increase its outlets from four to 75 over the next three years.
- The brand was established in 2016 and is known for its vegan leather products and making Peta-approved bags. It offers bags, wallets, and footwear through multiple channels including marketplaces and physical stores.
- According to co-founder Pradeep Krishnakumar, the majority (90%) of the business is online. However, after strong performance in its first store, Zouk plans to expand its offline presence. Zouk claims to have over 700,000 customers across India and has raised a total of $14.5m to date.
- The Indian online lifestyle market is expected to reach between $40-45bn by 2028, compared to its current size of $16-17bn, according to a report by Bain & Company and fashion marketplace Myntra.
- Aavishkaar Capital's investment director, Divya Gupta, stated that the fund believed Zouk was well-placed to 'capture a significant share of the rapidly growing bags and accessories market' in India.
- Earlier this year, Zouk entered the luggage market with backpacks and trolley bags. Predominant players in the luggage space in India include Mokobara, Uppercase and Safari Industries.
- Zouk's last funding round, in May 2020, raised $3m led by Stellaris Venture Partners. At that time, Sugar Cosmetics founders Kaushik Mukherjee and Vineeta Singh, Deutsche Bank India CEO Dilip Khandelwal, Atomberg founder Manoj Meena, and Sharrp Ventures also participated.
- Krishnakumar added that Zouk plans to broaden the range of its products across handbags, backpacks, totes, and satchels.
- Zouk has made the majority of its sales through D2C website. However, it also sells its products through marketplaces like Flipkart and Amazon and quick commerce.
- Other investors backing Zouk include Stellaris Venture Partners, JJ Family Office and Sharrp Ventures.
- The company plans to use the funding to expand its network of outlets, invest in talent recruitment and strengthen its marketing and supply chain capabilities.
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