Mumbai-based direct-to-consumer (D2C) brand Zouk, known for its eco-friendly products, is raising $10 million in a fresh funding round led by Aavishkaar Capital. This marks a significant step for the brand, which specializes in handmade, cruelty-free, and vegan leather items such as laptop bags, wallets, and handbags.
Zouk’s Rise
Founded in 2015 by Disha Singh and Pradeep Krishnakumar, Zouk has carved a niche in the market by focusing on sustainable fashion, sourcing its materials locally in India. Its products are made by skilled in-house artisans, promoting ethical consumption. Zouk prides itself on being a 100% vegan brand, which has drawn attention from investors interested in eco-friendly ventures.
Funding Highlights
Aavishkaar Capital, a known impact investment firm, has not only provided a term sheet but also completed its due diligence for the upcoming $10 million round. Existing backer Stellaris Venture Partners, which led Zouk’s previous $3 million round in March 2023, is also participating in this new round. Other notable investors in Zouk include angel investors such as Vineeta Singh, co-founder of Sugar Cosmetics, and Manoj Meena, founder of Atomberg.
The brand’s valuation is expected to rise to around $50 million after this round, a significant jump from its previous valuation of $7 million during its last funding round. This uptick in valuation reflects growing investor confidence in the brand’s potential to scale in the booming sustainable fashion industry.
Financial Performance
Zouk’s financials have been on a promising trajectory. For FY23, the brand reported a revenue of ₹47.41 crore, a sharp increase from ₹21.82 crore in the previous fiscal year. However, losses also widened to ₹10.55 crore from ₹77 lakh during the same period, showcasing the challenges of scaling up in a competitive industry.
Despite the growing losses, Zouk’s consistent revenue growth demonstrates its appeal to a broad consumer base. Its unique selling proposition of eco-conscious, locally crafted products resonates with customers and investors alike.
Future Outlook
The new funding round is expected to fuel Zouk’s expansion plans, allowing it to increase production capacity, expand its product line, and explore international markets. With the rising demand for sustainable fashion, the brand is well-positioned to leverage its strong identity and investor backing to become a key player in the industry.
Source: This article is based on information from StartupStory, Entrackr, and The Economic Times.
Key Highlights:
- Zouk is raising $10M in funding led by Aavishkaar Capital.
- The brand focuses on handmade, cruelty-free vegan leather products.
- Zouk’s valuation is expected to reach $50M after this funding round.
- The company’s FY23 revenue grew to ₹47.41 crore, though losses increased to ₹10.55 crore.
