Mumbai-based direct-to-consumer (D2C) fashion brand Zouk is in the final stages of closing a new funding round. The round, expected to raise over $10 million, will be led by impact investment firm Aavishkaar Capital, with participation from existing backer Stellaris Venture Partners.
“Aavishkaar has issued a term sheet and completed due diligence,” said a source close to the deal, requesting anonymity as the talks remain confidential. Aavishkaar Capital, known for investing in startups like AgroStar, Milk Mantra, and GoDesi, aims to continue its support of sustainable and impact-driven ventures with this new investment in Zouk.
Founded in 2015 by Disha Singh and Pradeep Krishnakumar, Zouk is known for producing cruelty-free, 100% vegan leather products such as laptop bags, tote handbags, sling bags, and chain wallets. The brand prides itself on sourcing and manufacturing its goods within India, with products handmade by in-house artisans.
This latest funding round marks Zouk’s first major raise in over 18 months, following a $3 million round in March 2023 led by Stellaris Venture Partners. Notable angel investors such as Atomberg founder Manoj Meena and the founders of Sugar Cosmetics, Vineeta Singh and Kaushik Mukherjee, also joined that round. In total, Zouk has raised $4.5 million to date, including $1.5 million in pre-Series A funding from Stellaris and undisclosed seed funding from Titan Capital in 2021.
The upcoming investment will value Zouk at approximately $50 million (around Rs 400 crore), up from its $7 million valuation during the previous funding round, according to startup intelligence platform TheKredible.
Financially, Zouk reported revenues of Rs 47.41 crore for the fiscal year ending in March 2023, more than doubling its FY22 revenue of Rs 21.82 crore. However, losses also widened during this period, rising from Rs 77 lakh in FY22 to Rs 10.55 crore in FY23. The company has not yet filed its FY24 numbers.
At the time of its last funding, Zouk’s co-founders Singh and Krishnakumar each held a 31% stake in the company, while Stellaris Venture Partners was the largest external stakeholder with a 19.63% share. Neither Zouk nor Aavishkaar responded to requests for comment on the current funding talks.
This new round of funding signals continued investor confidence in Zouk’s mission of creating cruelty-free fashion while scaling its operations in a competitive market.
