Bengaluru-based lifestyle brand Chumbak has raised $10.02 Mn (INR 70 Cr) in a Series D round. The round was led by private equity fund Gaja Capital with participation from venture capital funds Matrix Partners and Seedfund.
The round makes Gaja Capital the largest stakeholder with a 35% share in the company. Prior to this round, Chumbak has raised $2.7 Mn from investors such as Gaja. Matrix and Seedfund.
Vivek Prabhakar, CEO, Chumbak, said the company plans to double the number of stores by next year and will focus on metros primarily. The funds will also help the company expand its presence in Tier 2 cities.
Chumbak: From Souvenir Shop To Lifestyle Brand
Founded in early 2010 by Vivek Prabhakar and his wife Shubhra Chadda, the company initially focused on creating colourful souvenirs inspired by pop culture and Indian folk art.
At present, Chumbak works as an O2O lifestyle brand offering clothing, accessories, footwear, souvenirs, phone and laptop cases, coffee mugs, accessories, and home décor among other products. It sells products in over 100 categories across 47 physical stores in a number of Indian cities, including Delhi/NCR, Mumbai, Hyderabad, Pune, Chennai, Chandigarh, Kochi and Jaipur.
Chumbak has partnered with major online marketplaces such as Myntra, Amazon, Jabong, Koovs and app-only fashion discovery properties like Raposo, Wooplr and Vonik.
In an earlier interview, Prabhakar has said that “Our USP will always be our designs and our colours which will be available across silhouettes and price points that allow our customers a unique statement. This allows us to compete effectively. We see very strong repeats in the brand and customer loyalty helps drive the story around the brand.”
The company now plans to double the number of stores by next year. Chumbak reported a revenue of INR 40 Cr for FY 2017, with accessories and fashion contributing 60% while home decor segment contributing about 40% to the revenue.
Lifestyle Sells In India
As more and more Indians get online, one of the biggest changes is the way Indians shop for everyday items, electronics, gifts and clothes. Platforms such as Amazon, Flipkart and Myntra have become bywords for shopping in the urban market.
A recent Deloitte India and Retailers Association of India (RAI) report said that India’s ecommerce market is worth $200 Bn at present and will grow to $1.2 Tn by 2021. Brands such as Chumbak, which marry the online and offline experience through their online and physical retail stores, will be a huge part of that growth.
With the rise of social media and ecommerce platforms, more and more users are buying things online, including homegrown brands. This includes the likes of Chumbak, TheSouledStore, Bewakoof, Happily Unmarried and more, which have grown from small social media pages to big brands which resonate with the youth of India.