Indian ethnicwear brand Libas has closed its first external funding round with an investment of Rs 150 crore ($18 million) by IAF Series 5, a fund managed by ICICI Venture.
With the raised capital, Libas aims to strengthen its omni-channel presence and ramp up its exclusive brand and retail outlets across key metros and tier 1/2/3 cities over the next few years.
DealStreetAsia reported in October that ICICI Venture was in talks with Libas for an investment.
Established as a digital-first brand in 2013, Libas is looking to ramp up its exclusive retail outlets nationwide. While its products are already available online on platforms such as Amazon, Flipkart, and Myntra, the company has also built a substantial offline presence through around 400 multi-brand outlets such as Lifestyle, Shoppers Stop, and Central. However, it has less than 20 exclusive brand stores.
“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,” Sidhant Keshwani, founder and CEO of Libas, said.
Libas competes with the likes of Fabindia, Biba, and W — all prominent players in the ethnicwear segment, which includes attires like sarees, salwar suits, lehenga cholis, and kurta pajamas.
It also plans to leverage its brand, design capabilities, technology infrastructure, and supply chain network across channels. Libas crossed the Rs 500-crore revenue mark in FY24.
“The industry is expected to see organised players with a focus on branding and omnichannel customer experience becomes brands of choice for the consumers,” said Gagandeep S Chhina, Senior Director, Private Equity, ICICI Venture.
ICICI Venture’s other investments in the segment include publicly held Go Fashions India (owner of women’s wear brand Go Colors), from which it has made a partial exit. Its other portfolio companies include Theobroma Foods, a patisserie headquartered in Mumbai; biotechnology company Bharat Biotech; and consumer houseware maker Cello World.
