Ethnic Wear D2C Brand Libas Raises INR 150 Cr From ICICI Ventures

D2C ethnic wear brand Libas has bagged INR 150 Cr in a strategic funding round from ICICI Ventures, the alternative investment arm of ICICI Bank. 

The company will use the capital to further accelerate offline expansion across geographies, and ramp up its exclusive brand and retail outlets across key metros and Tier-1, 2, and 3 cities.

Speaking with Inc42, Libas CEO Sidhant Keshwani said that a chunk of the capital will also be used to shore up the platform’s tech stack and invest more in marketing.

“… This investment will fuel expansion across categories and geographies, with a strong focus on omnichannel experience. Our collaboration with ICICI Venture, bolstered by their successful track record and managerial expertise, perfectly aligns with Libas’ vision to revolutionise the Indian ethnic wear market,” said Keshwani.

Commenting on the fundraise, Gagandeep S Chhina, senior director of private equity at ICICI Ventures, said, “… Libas has demonstrated industry leading growth characteristics in a capital efficient manner and plans to strengthen its digital presence while focussing on its offline expansion and omnichannel capabilities in the Indian market… ”

This is the first time that the fast fashion ethnic wear brand has raised external funding. The investment came from ICICI Ventures’ IAF Series 5 fund. 

The Omnichannel Pivot

Taking on the mantle from his father, Keshwani steered Libas’ online foray in 2014. Today, Libas is an omnichannel brand that sells fast fashion Indian traditional apparels for women across both offline and online channels. 

As per Keshwani, Libas’ website accounts for 15% of its sales, while marketplaces like Myntra and Amazon contribute 70% to its topline. The remaining 15% comes from offline channels. 

The startup claims to have clocked a revenue of INR 500 Cr in the financial year 2023-24 (FY24).

Keshwani said that the brand opened 15 exclusive brand outlets (EBOs) in the past one year and has now set its eyes on adding 200-250 outlets in the next 2.5 years. It is eyeing an annual revenue of INR 1,000 Cr by the end of the next fiscal year. 

Libas is banking on the growing ecommerce adoption in the country on the back of affordable internet prices and growing smartphone penetration. Inc42 estimates the number of online shoppers in India to cross the 500 Mn mark by 2030. 

As a result, the ecommerce sector is the darling of investors as well as entrepreneurs. Earlier this month, it was reported that D2C menswear brand DaMENSCH raised INR 21.62 Cr in an extended Series B round from existing investors Matrix Partners, Saama Capital, among others. 

Earlier this week, Lyskraft, an omnichannel fashion startup floated by former Zomato senior executive Mohit Gupta and Myntra founder Mukesh Bansal, secured $26 Mn in a seed funding round led by Peak XV Partners.

At the heart of all this is the homegrown fashion ecommerce market which is projected to surpass the $112 Bn mark by 2030, as per Inc42.