Libas secures Rs 150 crore in funding from ICICI Venture's IAF Series 5 fund

30 May 2024 , 02:21 PM

With aspirations to grow rapidly offline, the ethnic fashion firm Libas has secured ₹150 Crore from ICICI Venture’s IAF Series 5 fund.

In FY 24, the company reported sales of ₹500 Crore, and by FY 26, it is anticipated to reach ₹1,000 Crore.

Libas has 15 stores across the nation and began operating offline approximately 18 months ago. By 2026, it intends to open 200 locations.

The founder and CEO of Libas, Sidhant Keshwani, stated, “The organised Indian apparel sector is expected to grow significantly in the coming years and this investment will fuel expansion across categories, and geographies with a strong focus on omnichannel experience.”

Due to increasing losses and declining demand, Danish fashion retailer Bestseller said recently that it is closing its Indian ethnic apparel brand, Indifusion, which it had purchased three years prior.

The action also represents a wider trend of slowing that has been present in the ethnic wear market since last year.

“The sector has seen a rather quiet six to eight months. The downturn in mass consumption of products has affected mass consumption more than ethnic clothing specifically. The category of ethnic wear has been expanding, but within it, Indian and Western styles are blending and the trend has shifted more towards fusion, according to Keshwani.

Despite the promotion of westernised clothes in their market by international fashion labels like Zara, H&M, and Uniqlo, ethnic wear remains the largest category in the women’s wear segment in India, accounting for 71% of the market.

According to Gagandeep S. Chhina, Senior Director, Private Equity, ICICI Venture, “the industry is expected to see organised players with focus on branding and omnichannel customer experience become brands of choice for the consumers.”

The brand is well-represented offline through EBOs, big-box stores, and multi-brand outlets in addition to its robust online presence on sites like Flipkart and Myntra.

One major source of income is the brand’s direct-to-consumer (D2C) channels.

Libas’s exclusive transaction advisor was KPMG. JSA served as ICICI Venture’s legal advisor for the IAF Series 5 fund.

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