Mukesh Bansal Nears $50-Million Investment for Premium Fashion Venture from Peak XV Partners and Accel
- ByStartupStory | August 18, 2023
Renowned entrepreneur Mukesh Bansal, known for founding Myntra and Cultfit, is in advanced discussions to secure a substantial $50 million Series A funding round for his latest premium fashion venture. Esteemed investors including Peak XV Partners (formerly Sequoia India) and Accel are expected to play a pivotal role in this funding, sources familiar with the matter revealed.
Bansal’s newest venture, in collaboration with Mohit Gupta, will focus on the premium fashion sector, catering to the dynamic preferences of Gen Z, a rapidly growing and appealing demographic for e-commerce platforms. Gupta, previously a co-founder at Zomato, has gained valuable expertise in supply-chain management through his leadership in the food delivery business.
With a rich history in e-commerce, Bansal launched his journey with the fashion platform Myntra and has been involved with ventures like Virgio, a Gen Z-focused fashion destination founded by Amar Nagaram, a former Myntra executive. Despite stepping back from an active role, Bansal’s influence remains as he oversees Cultfit and collaborates with Tata Digital.
Gupta will be based in Delhi, driving the venture’s execution, while Bansal will operate from Bengaluru, continuing his oversight of Cultfit. Bansal, Peak XV Partners, and Accel have refrained from commenting on the matter.
Gen Z: A Significance for E-commerce
The new initiative adopts a venture studio model under the umbrella of Meraki Labs, the holding company. This setup allows for the incubation of various ventures within the ecosystem, a strategy that Meraki Labs has already employed with startups like Skyroot, Groww, and Gigforce.
Bansal and Gupta’s focus on the Gen Z segment aligns with trends in the e-commerce landscape. This demographic represents a critical cohort due to their significant online presence and disposable income. A Bain & Co. report indicates that one in three online shoppers belongs to Gen Z, with fashion being their primary category of purchase.
Recognizing Gen Z’s growing significance, major players like Flipkart Fashion and Myntra have introduced dedicated services to cater to their preferences. Myntra launched FWD, while Flipkart unveiled Spoyl, emphasizing the importance of capturing Gen Z’s evolving needs.
Previous media reports speculated on Bansal and Gupta’s plans, suggesting valuations of $100-$250 million, though Bansal denied these claims earlier this year, clarifying his commitment to Cultfit and affirming Meraki Labs’ role in investments.
As Bansal’s foray into the premium fashion segment unfolds, it embodies his enduring dedication to innovation and entrepreneurship.
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