Zouk Set to Raise $10 Million Led by Aavishkaar Capital
- ByStartupStory | October 7, 2024
Mumbai-based direct-to-commerce (D2C) fashion brand Zouk is reportedly in late-stage discussions to raise a fresh funding round of $10 million. According to sources familiar with the matter, Aavishkaar Capital has issued a term sheet and completed due diligence for the round, which will be led by the impact investment firm. Existing investor Stellaris Venture Partners will also participate in the funding.
The latest round comes after a gap of more than 18 months for Zouk, a brand that focuses on cruelty-free, vegan leather products. “Aavishkaar Capital has issued a term sheet and has completed due diligence. The impact fund, along with existing backer Stellaris Venture, will invest over $10 million,” said one of the sources, requesting anonymity due to the private nature of the discussions.
Founded in 2015 by Disha Singh and Pradeep Krishnakumar, Zouk offers a range of products including laptop bags, tote handbags, sling bags, and chain wallets. The company emphasizes that all of its products are handmade by in-house artisans using 100% vegan leather, sourced and manufactured within India.
Zouk’s most recent funding round occurred in March 2023, when the company raised $3 million, led by Stellaris Venture Partners. The round also saw participation from prominent angel investors such as Manoj Meena, founder of Atomberg, and Vineeta Singh and Kaushik Mukherjee, founders of Sugar Cosmetics. To date, Zouk has raised more than $4.5 million, including $1.5 million in a pre-Series A round led by Stellaris and undisclosed seed funding led by Titan Capital in 2021.
Zouk’s upcoming funding round is expected to value the company at around $50 million (approximately Rs 400 crore). During its last funding round, the company’s valuation was pegged at $7 million, according to startup data intelligence platform TheKredible.
For the fiscal year ending in March 2023, Zouk reported revenues of Rs 47.41 crore, a significant increase from Rs 21.82 crore in FY22. However, the company’s losses also widened to Rs 10.55 crore from Rs 77 lakh in the same period. Zouk has not yet disclosed its financial performance for FY24.
As of its most recent funding round, Zouk’s co-founders Disha Singh and Pradeep Krishnakumar each held a 31% stake in the company, while Stellaris was the largest external shareholder with a 19.63% stake.
Queries sent to Zouk and Aavishkaar on August 6 regarding the current funding round did not elicit any response.
This development was first reported by Entrackr.
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