Libas, a direct-to-consumer (D2C) ethnic wear brand, has raised INR 150 crore in a strategic funding round led by ICICI Ventures, the alternative investment arm of ICICI Bank.
Utilization of Capital
The infusion of capital will enable Libas to expedite its offline expansion across various geographies. Additionally, the funds will be allocated towards enhancing its exclusive brand and retail outlets in key metros as well as Tier-1, 2, and 3 cities. Sidhant Keshwani, CEO of Libas, highlighted that a significant portion of the investment will be directed towards fortifying the platform’s technological infrastructure and intensifying marketing efforts.
Vision for Expansion
Keshwani expressed his enthusiasm regarding the partnership with ICICI Ventures, emphasizing their shared vision to revolutionize the Indian ethnic wear market. He underscored the company’s commitment to offering an omnichannel experience to customers, leveraging the expertise and successful track record of ICICI Ventures.
ICICI Ventures’ Perspective
Gagandeep S Chhina, Senior Director of Private Equity at ICICI Ventures, lauded Libas for its remarkable growth trajectory and capital-efficient approach. He emphasized the brand’s plans to bolster its digital presence while focusing on offline expansion and omnichannel capabilities in the Indian market.
First External Funding
This marks the first instance of Libas securing external funding, with the investment coming from ICICI Ventures’ IAF Series 5 fund. The move signifies a significant milestone for the fast fashion ethnic wear brand as it charts its course for accelerated growth and market expansion.
Omnichannel Strategy
Under the leadership of Sidhant Keshwani, Libas has transitioned into an omnichannel brand, catering to the evolving preferences of consumers across both offline and online channels. The company’s website, marketplaces like Myntra and Amazon, and offline channels collectively contribute to its robust sales performance.
Growth Trajectory and Future Outlook
With a reported revenue of INR 500 crore in FY24, Libas is poised for exponential growth. The brand aims to further augment its retail presence by opening 200-250 exclusive brand outlets (EBOs) over the next 2.5 years, targeting an annual revenue of INR 1,000 crore by the end of the next fiscal year.
Thriving E-commerce Landscape
Libas’ fundraising comes amidst a thriving e-commerce sector in India, fueled by increasing internet accessibility and smartphone penetration. Investors and entrepreneurs alike are capitalizing on the burgeoning opportunities within the fashion e-commerce market, which is projected to surpass the $112 billion mark by 2030.
The Bottom Line
With the backing of ICICI Ventures, Libas is poised to scale new heights and redefine the landscape of ethnic wear in India. As it continues to innovate and expand its footprint, Libas remains committed to delivering exceptional value to its customers and stakeholders, solidifying its position as a leader in the D2C fashion segment.
