Lifestyle brand Chumbak announced it had raised Rs 85 crore in a funding round led by Gaja Capital. Existing investors Matrix Partners India, Seedfund and Narayan Ramachandran (former country head of Morgan Stanley) also participated in the funding round.
According to the founders, the investment will be used to expand the company's offline footprint by opening 20-25 stores per year. At the same time, Chumbak will use the funds to strengthen its online presence, and enter newer categories such as personal care.
Founded in 2012 by Shubhra Chadda and Vivek Prabhakar, Chumbak began its journey with India-inspired designs for souvenirs and accessories. Today, Chumbak caters to products for the home and wardrobe.
Having launched the apparel category (for men and women) in October 2015, the company's apparel and fashion accessories categories contribute more than 50 percent of its business. It also said that about 30 percent of the sales come from repeat buyers who purchase products across its 18 physical stores, as well as from online stores.
Speaking on the investment, Vivek, CEO and Co-Founder, Chumbak said,
“Our vision is to create a global, fashion led, lifestyle brand. We are thrilled to have Gaja Capital on board to add to the expertise that Matrix Partners have brought us in the last few years as we work towards this vision. We are excited about the journey ahead and energy levels are extremely high across the team.”
He added that Chumbak plans to enter overseas markets such as Indonesia, Malaysia, Singapore, and Hong Kong by the second quarter of 2018.
Rajat Agarwal, Vice President, Matrix India, added,
“Vivek and Shubhra have created a unique consumer brand. As early investors in Chumbak, we have seen them grow this brand across product categories and channels. We are privileged to partner with the Chumbak team and welcome Gaja Capital to the partnership. At Matrix, we have invested in home-grown brands such as W and Aurelia, and private brands continue to be an area of high interest for us.”
At present, the company has stores in Bengaluru, Delhi, Mumbai, Pune, Hyderabad, Cochin, Chandigarh, Chennai and Jaipur.
According to filings with Registrar of Companies, Chumbak raised a total of $1.7 million through equity and debt funding between November 2016, and May this year.
In May, it had raised Rs 8 crore in debt financing from Black Soil Capital Ltd, and Rs 3 crore from Narayan Ramachandran in November last year.