Zouk, a D2C lifestyle brand, has raised $10 million in a Series B funding round led by Aavishkaar Capital, Impact Fund and part of Aavishkaar Group.

This is Aavishkaar’s eighth investment under its $150 million AIF6 fund. The funding round also saw participation from existing investors – Stellaris Venture Partners, Titan Capital, Sharrp Ventures and the JJ Family. Spark Capital acted as exclusive advisor for this fundraising.

Founded by IIM Ahmedabad classmates and husband-wife duo Disha Singh and Pradeep Krishnakumar, Zouk primarily operates in the bags and luggage category. The brand claims that its handmade products are made from 100% vegan leather, sourced and manufactured in India, by in-house artisans.

“Their commitment to empowering communities through artisanal partnerships bridges the gap between Indian craftsmanship and modern designs and, in doing so, enables more than 1,000 artisans to achieve consistent and enhanced incomes. With plans to expand its product portfolio and exclusive retail outlets, we believe Zouk is well positioned to capture a significant share of the rapidly growing bags and accessories market in India,” said Divya Gupta, Chief Investment Officer at Aavishkaar Capital.

The startup currently has four exclusive outlets and plans to use this new capital to rapidly expand this network of exclusive outlets and plans to reach the 75 store mark, a statement said.

“This fundraise allows us to expand our online and offline channels, with strong consumer love and product market fit that we have already established,” said Pradeep Krishnakumar, co-founder of Zouk.

Zouk had achieved a turnover of ₹47.41 crore in FY2023 – an increase from ₹21.82 crores in FY22. However, the losses also reached ₹$10.55 million ₹77 lakhs over the same period. Financial data for FY24 is not yet publicly available.

The company added that it is rapidly recruiting across teams to further support its growth plans, with the aim of capturing a significant share of the Indian bags and accessories market which is expected to grow at a CAGR of 12 percent to reach 10, 6 billion dollars by 2024. .

New age brands like Mokobara, Nasher Miles and EUME, among others, are reshaping the Indian luggage market, providing tough competition to traditional brands like VIP. D2C brands present in the space are trying to attract consumers by offering them bold, colorful, elegant products with innovative shapes and designs. In short, it’s exciting not only for consumers but also for investors.

In September, D2C luggage brand Uppercase (Acefour Accessories) raised $9 million in a Series B round led by venture capital firm Accel. Prior to that, DSG Consumer Partners led a $1.2 million funding round in luggage and travel accessories startup ICON. In February, Peak XV Partners invested in high-end luggage maker Mokobara, while another investment firm Lighthouse took a stake in Safari Industries in March.

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