Dressfolk secures fresh funding led by Eternal Capital, Mamaearth’s Ghazal Alagh, among others

• ByStartupStory     |    January 28, 2025

Dressfolk, a brand celebrated for its dedication to authentic handloom clothing, has raised a fresh round of undisclosed funding led by Eternal Capital. This round also saw participation from renowned D2C founders Ghazal Alagh (Founder, Mamaearth) and Dhruv Koli (Founder, Boba Bhai), alongside Nobody Ventures and Eagle Wings Ventures. Additionally, 3 Peaks Ventures joined the funding, while existing investors All In Capital, Sidhant Keshwani (Libas), and Vidur Kataria (Master Chow) increased their investments, further demonstrating their faith in the brand.

Speaking about the funding, Nitin Mehrotra, Founder and CEO of Dressfolk, said, “Dressfolk focuses on marrying design and comfort, which deeply resonates with our customers. Wearing authentic handlooms and craftsmanship is a matter of pride for the people, and the newly raised funds will enable us to rapidly expand our offerings beyond sarees and build a broader portfolio of contemporary Indian wear.”

Since its inception, Dressfolk has sought to bridge the gap between traditional craftsmanship and contemporary fashion. Targeting an audience aged 25 and above, the brand offers timeless, classic Indian wear in natural, handwoven fabrics, distinguishing itself from fast-fashion trends dominated by synthetic materials.

Dhruv Dhanraj Bahl, Managing Partner at Eternal Capital, commented on the investment, saying, “Our conviction in Dressfolk comes not only from their unique business model, which places Bharat and its artisanal heritage at the core, but also from their stellar team, led by Nitin, whose deep and contextual experience gives the company an edge over its peers.”

Dressfolk has grown by close to 200% in FY24, boasting an impressive Average Order Value (AOV) of over ₹7,000. The brand is committed to modernizing timeless Indian weaves while empowering the artisan community. Currently, it works with over 800 weavers and 120 artisans across six states, furthering its mission of preserving India’s artisanal heritage.

In addition to its direct-to-consumer website, Dressfolk has expanded its reach through leading marketplaces such as Aza Fashions, Nykaa, and Myntra, and frequently hosts pop-ups across the country. To take Indian handloom global, the brand is planning to launch an international website, setting its sights on international markets.

The company’s low return rate is indicative of the deep trust and love it has garnered from its customers, including A-list celebrities. With a clear vision for the future, Dressfolk aims to establish itself as the most desirable destination for high-quality Indian handlooms and crafts.

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