Zouk, a prominent direct-to-consumer (D2C) brand specializing in bags and luggage, has successfully raised $10 million in its latest Series B funding round. The round was led by Aavishkaar Group, with additional participation from Stellaris Venture Partners, Titan Capital, Sharrp Ventures, and the JJ Family. This investment brings Zouk’s total funding to $14.5 million.
With this infusion of capital, Zouk aims to accelerate its growth by expanding its retail footprint, targeting the opening of 75 exclusive brand stores. Additionally, the company plans to strengthen its marketing initiatives, optimize its supply chain, and invest in talent across various operational segments.
Founded in 2015 by Disha Singh and Pradeep Krishnakumar, Zouk is known for its handmade products, including laptop bags, tote handbags, sling bags, and wallets. All items are made from 100% vegan leather, sourced locally in India. The startup, which has served over 700,000 customers to date, is now eyeing growth in the luggage market with the launch of new backpacks and trolley bags.
Sources suggest that Zouk’s valuation post-funding could reach approximately $50 million (around Rs 400 crore). The company’s last valuation was estimated at $7 million, as reported by startup data platform TheKredible.
During the previous funding round, co-founders Disha Singh and Pradeep Krishnakumar each held 31% ownership in the company, while Stellaris was the largest external stakeholder, holding a 19.63% share.
Financially, Zouk has shown significant growth, reporting revenue of Rs 47.41 crore for the fiscal year ending March 2023, up from Rs 21.82 crore in FY22. However, the company’s losses also rose, reaching Rs 10.55 crore compared to Rs 77 lakh in the previous year. The company has yet to release its financials for FY24.
Aavishkaar Capital, the lead investor in this round, has a track record of backing innovative startups such as AgroStar, Altum Credo, Ergos, GoDesi, Milk Mantra, and Newtrace.