D2C bags and luggage brand Zouk raises $10 million led by Aavishkaar Capital

Direct-to-consumer (D2C) bags and luggage brand Zouk has raised $10 million in a Series B funding round led by Aavishkaar Capital.

The round also saw participation from existing investors Stellaris Venture Partners, Titan Capital, Sharrp Ventures, and JJ Family Office.

The latest funding brings Zouk's total raised capital to $14.5 million, enabling the brand to scale its operations and expand its market presence both online and offline.

Expansion of exclusive brand outlets and product line

Zouk plans to utilize the fresh capital primarily for expanding its network of exclusive brand outlets. The startup is aiming to establish 75 stores across the country, capitalizing on the growing consumer demand for its products.

Additionally, Zouk is set to expand its product line, having recently ventured into the luggage segment with signature backpacks and trolley bags. Co-founder Disha Singh noted that these products are receiving positive feedback, especially from women customers.

Investment in supply chain, marketing, and talent acquisition

Beyond store expansion, Zouk will focus on strengthening its supply chain and marketing strategies. The company aims to improve its brand recognition and further its reach in the competitive bags and accessories market.

Zouk co-founder Pradeep Krishnakumar said, "This fundraise enables us to scale up our online and offline channels, with a strong consumer love and product market fit we have already established."

It also plans to invest in talent across various verticals to support its growth initiatives.

Financial performance and company valuation 

For the fiscal year ending in March 2023, Zouk reported a revenue of Rs 47.41 crore, a significant increase from Rs 21.82 crore in the previous year.

However, the startup's losses also grew to Rs 10.55 crore, compared to Rs 77 lakh in FY22.

Aavishkaar Capital's investment strategy

Aavishkaar Capital, the lead investor in this round, has a history of investing in socially-conscious businesses. Zouk marks Aavishkaar’s eighth investment from its $150 million AIF6 fund.

Investment Director Divya Gupta commented, “With plans to expand its product portfolio and exclusive brand outlets, we believe Zouk is well-positioned to capture a significant share of the rapidly growing bags and accessories market in India.”

Other investments by Aavishkaar include startups in sectors such as sustainable agriculture, healthcare, and climate solutions.