The fashion and lifestyle sector is buzzing with energy as it enters a new fiscal year. Many early-stage brands are seeking fresh investment. This shows that investors are becoming more interested again.
For instance, Zouk, a bag manufacturer, is in talks to raise $30-35 million from Tata Capital and IvyCap Ventures. So far, the direct-to-consumer brand has gathered about $15 million from investors including Stellaris Venture Partners and Titan Capital.
Fashion quick commerce is on the rise too. This concept allows customers to receive their orders within 30 to 60 minutes. Bengaluru-based Slikk, supported by Lightspeed and Nexus Venture Partners, is aiming to raise $15-20 million with help from Susquehanna Asia VC. Companies like Zilo and Knot are also seeing significant funding lately, with Zilo raising $15 million in February.
The market keeps evolving. Klydo, a fast-fashion platform launched by ex-Udaan executive Pradeep Yadav, is looking to secure $11-12 million from a major investor. Men’s bottom wear brand The Pant Project and activewear brand Blissclub are also looking at fundraising opportunities as venture capital interest in the D2C sector grows.
According to Redseer, India’s apparel market was valued at around $70 billion in 2024 and is projected to reach $130-150 billion by 2030, a growth rate of 10-12% annually. Niche areas like men’s fashion, shapewear, and clothing for Gen Z and kids are expected to attract new brands. This is a promising avenue for investors.
What’s changed? Previously, investors hesitated due to challenges in managing inventory, especially in fast fashion. Dipankar Basu, a partner at Fireside Ventures, noted that the landscape is shifting as more success stories emerge, such as the IPO of Vedant Fashions, owner of Manyavar.
Dhruv Toshniwal, CEO of The Pant Project, highlighted that today’s brands are evolving. They’re becoming better at responding to trends and managing supply and demand. He emphasizes the need for capital to grow, whether in stores or online.
Artificial intelligence is also reshaping the industry. Anant Vidur Puri from Bessemer Venture Partners mentioned how AI enhances customer experiences through personalization.
Quick commerce is another exciting trend. Startups like Knot, Slikk, and Zilo are capitalizing on it by providing speedy deliveries in major cities. Rahul Chowdhri from Stellaris Venture Partners pointed out that this model brings convenience and lessens the hassle of returns, making it appealing for fashion brands.
The fashion and lifestyle market is definitely in a transformative phase, with a mix of innovation and investment reshaping its future.
For more insights on venture capital in this industry, you can refer to Economic Times.
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