Kusha Kapila’s D2C Innerwear Brand Underneat Raises $6 Mn

Influencer Kusha Kapila’s D2C innerwear brand UNDERNEAT has secured $6 Mn (about INR 54 Cr) in its pre-Series A funding round from existing investor Fireside Ventures. 

In a statement, the startup said it will use the fresh capital to scale its operations and strengthen distribution channels across the country.

Founded earlier this year by Kapila and Vimarsh Razdan, Underneat is a shapewear brand that offers 24 SKUs like premium bras, seamless shapewear, bodysuits, tummy tuckers, and more.

Underneat claimed that its annual run rate has crossed the INR 150 Cr mark, while it is EBITDA positive. The startup sells its products via its own website, as well as ecommerce and quick commerce platforms.

Prior to this, it raised $1 Mn in its seed funding round from Honasa cofounder Ghazal Alagh and Fireside Ventures. 

Notably, Fireside Ventures announced the final close of its Fund IV at INR 2,265 Cr (about $253 Mn) earlier this month to back 30-35 early stage consumer brands. Its initial cheque size would be in the range of $1 Mn to $12 Mn.

The VC firm counts brands like Honasa Consumer, boAt, The Sleep Company, Frubon, The Good Bug, Slurrp Farm, Sweet Karam Coffee, Pilgrim, Well Being, Traya in its portfolio. 

The global cultural influence and the rise of brands like Spanx and SKIMS have normalised shapewear as an everyday essential. However, no brand has truly owned the space in India. It is this segment which Underneat is looking to disrupt. 

The startup sources wicking yarns from Germany and works with manufacturing companies that have factories equipped with Derco seamless machines, which are known for their precision and consistency. 

It competes with the likes of Krvvy, Triumph, Marks & Spencer, Jockey, and Enamor in the country’s innerwear market, which is projected to reach a size of $20 Bn by 2030.

Earlier this year, Krvvy raised over INR 6 Cr in its pre-seed round from Titan Capital and All In Capital.