Saturday, July 20, 2024

Libas Secures Rs 150 Crore in Funding from ICICI Ventures

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Libas, a direct-to-consumer (D2C) ethnic wear brand, has secured Rs 150 crore in its first external funding round. This investment comes from ICICI Ventures, the alternative investment arm of ICICI Bank, specifically through their IAF Series 5 fund.

Details and Company Background

Libas, owned by Zivore Apparel Pvt Ltd, has been self-funded since its start in 2013. Over the years, it has steadily grown its market presence. The brand plans to use this new capital to speed up its offline expansion and strengthen its omnichannel presence.

Libas Plans for Expansion

“This investment will drive expansion across all categories and regions, with a strong focus on the omnichannel experience,” said Sidhant Keshwani, CEO of Libas. He also mentioned that the funds will help enhance the brand’s technology and marketing capabilities and facilitate the opening of new stores in major cities, including tier 1, 2, and 3 cities.

Libas aims to achieve a substantial growth rate of 40-45% in the coming year, targeting Rs 1,000 crore in revenue by the end of next year, Keshwani added.

Operating Both Online and Offline

Libas, founded by Sidhant Keshwani and Sunil Keshwani, sells ethnic fashion for women through both online and offline channels. The company’s website accounts for 15% of its sales, while marketplaces like Flipkart, Myntra, and Amazon contribute 70%. The remaining 15% comes from offline channels, including 15 Exclusive Brand Outlets (EBOs) and 400 large-format stores and multi-brand outlets like Lifestyle and Shoppers Stop.

The company has opened around 18 retail outlets and plans to expand to over 160 stores in various cities over the next four years. Libas recently crossed the Rs 500 crore revenue mark in the fiscal year.

ICICI Ventures’ Perspective

Gagandeep S Chhina, Senior Director of Private Equity at ICICI Venture, commented on the investment, saying, “Libas, under the leadership of Sidhant and Sunil Keshwani, has become a well-established apparel brand for Indian women consumers. Libas has shown industry-leading growth in a capital-efficient manner and plans to strengthen its digital presence while focusing on its offline expansion and omnichannel capabilities in the Indian market. The industry is expected to see organized players focusing on branding and omnichannel customer experience become the brands of choice for consumers.”

This investment marks a significant milestone for Libas as it continues to grow and expand its reach across India.

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