Shobitam, D2C Ethnic Wear Brand, Acquires Fashion Label ‘House of Blouse’

• ByStartupStory     |    February 21, 2023

Seattle-based ethnic wear brand Shobitam has announced its acquisition of apparel brand House of Blouse to expand its product offerings. The financial details of the deal have not been disclosed. Shobitam, which was founded in 2019 by Aparna Thyagarajan and Ambika Thyagarajan, is a thriving direct-to-consumer (D2C) platform for ethnic fashion, serving customers in more than 40 countries. The brand offers a wide range of products, including sarees and accessories.

According to Aparna Thyagarajan, the co-founder of Shobitam, the acquisition of apparel brand House of Blouse will enhance their customer experience and offer a wider variety of unique products. Shobitam has received a funding of Rs 12 crore (approximately $1.5 million) from Hearth Ventures and angel investor Girish Laxman. On the other hand, House of Blouse, which sells sarees and tailored blouses on its website, asserts that it ships globally.

Roopa Reddy, the co-founder and creative head of House of Blouse, expressed excitement about the acquisition and the opportunity to expand beyond blouses and tap into the solid customer base that Shobitam has already built in different countries.

In recent times, there has been an increased interest in the D2C space by large conglomerates, as previously reported. Investment bankers and investors suggest that buying out D2C brands is becoming more attractive to large conglomerates amidst a funding crunch for unprofitable startups. This trend has been growing over the past few years and is expected to accelerate in 2023, particularly for startups that require capital to stay afloat.

D2C fashion brand D’chica recently secured Rs 1.62 crore in funding from Velocity, a revenue-based financier, to bolster its recruitment and marketing initiatives. The brand’s primary offerings include innerwear, in addition to a fashion line comprising sportswear, loungewear, and footwear, which generate revenue. Similarly, Bewakoof Brands Pvt. Ltd recently gave TMRW, a wholly-owned unit of Aditya Birla Fashion Retail Ltd., a majority stake worth approximately Rs 200 crore. Bewakoof aims to achieve a 10% EBITDA margin and break even by the next financial year over the next five years.

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