D2C bangs and luggage brand Zouk raises $10 million led by Aavishkaar Capital
- Zouk, a direct-to-consumer bags and luggage brand, has successfully raised $10 million in Series B funding led by Aavishkaar Capital, increasing its total capital raised to $14.5 million.
- The company plans to use the funds primarily to expand its network of exclusive brand outlets, targeting the establishment of 75 stores across India, and to broaden its product line, including newly introduced backpacks and trolley bags.
- Zouk will also focus on enhancing its supply chain and marketing strategies to improve brand recognition and reach in the competitive bags and accessories market, while investing in talent acquisition to support growth initiatives.
- For the fiscal year ending March 2023, Zouk reported significant revenue growth but also saw an increase in losses, reporting Rs 10.55 crore in losses compared to Rs 77 lakh in the previous year.
- Aavishkaar Capital, known for investing in socially-conscious businesses, views Zouk as a strong contender in the growing Indian bags and accessories market, marking their eighth investment from a $150 million fund.
Direct-to-consumer (D2C) bags and luggage brand Zouk has raised $10 million in a Series B funding round led by Aavishkaar Capital.
The round also saw participation from existing investors Stellaris Venture Partners, Titan Capital, Sharrp Ventures, and JJ Family Office.
The latest funding brings Zouk’s total raised capital to $14.5 million, enabling the brand to scale its operations and expand its market presence both online and offline.
Expansion of exclusive brand outlets and product line
Zouk plans to utilize the fresh capital primarily for expanding its network of exclusive brand outlets. The startup is aiming to establish 75 stores across the country, capitalizing on the growing consumer demand for its products.
Additionally, Zouk is set to expand its product line, having recently ventured into the luggage segment with signature backpacks and trolley bags. Co-founder Disha Singh noted that these products are receiving positive feedback, especially from women customers.
Investment in supply chain, marketing, and talent acquisition
Beyond store expansion, Zouk will focus on strengthening its supply chain and marketing strategies. The company aims to improve its brand recognition and further its reach in the competitive bags and accessories market.
Zouk co-founder Pradeep Krishnakumar said, “This fundraise enables us to scale up our online and offline channels, with a strong consumer love and product market fit we have already established.”
It also plans to invest in talent across various verticals to support its growth initiatives.
Financial performance and company valuation
For the fiscal year ending in March 2023, Zouk reported a revenue of Rs 47.41 crore, a significant increase from Rs 21.82 crore in the previous year.
However, the startup’s losses also grew to Rs 10.55 crore, compared to Rs 77 lakh in FY22.
Aavishkaar Capital’s investment strategy
Aavishkaar Capital, the lead investor in this round, has a history of investing in socially-conscious businesses. Zouk marks Aavishkaar’s eighth investment from its $150 million AIF6 fund.
Investment Director Divya Gupta commented, “With plans to expand its product portfolio and exclusive brand outlets, we believe Zouk is well-positioned to capture a significant share of the rapidly growing bags and accessories market in India.”
Other investments by Aavishkaar include startups in sectors such as sustainable agriculture, healthcare, and climate solutions.
Here’s a summary of the key information regarding Zouk’s recent funding round:
Startup
- Name: Zouk
- Industry: Direct-to-consumer (D2C) bags and luggage
Founders
- Co-founders:
- Disha Singh
- Pradeep Krishnakumar
Funding Details
- Total Amount Raised in Series B: $10 million
- Total Capital Raised to Date: $14.5 million
- Funding Round: Series B
- Date of Funding: Not specified in the provided text.
Investors
- Lead Investor: Aavishkaar Capital
- Participating Investors:
- Stellaris Venture Partners
- Titan Capital
- Sharrp Ventures
- JJ Family Office
Plans with the Fundraised Capital
- Expansion Goals:
- Establish 75 exclusive brand outlets across India
- Expand product line, including new luggage items
- Operational Focus:
- Strengthening supply chain
- Enhancing marketing strategies
- Talent acquisition across various verticals
Financial Performance
- Revenue (FY March 2023): ₹47.41 crore
- Previous Year Revenue: ₹21.82 crore
- Losses (FY22): ₹10.55 crore
- Previous Year Losses: ₹77 lakh
Investor Strategy
- Aavishkaar Capital:
- Investment Strategy: Focus on socially-conscious businesses
- This investment (Zouk) is from their $150 million AIF6 fund, marking their eighth investment.
This summary captures all the key components surrounding Zouk’s latest funding round and strategic direction.