Sneaker brand Gully Labs raises Rs 8.7 crore in a seed funding round

Gully Labs, a sneaker startup blending Indian design traditions with modern craftsmanship, has raised Rs 8.7 crore in seed funding to expand its product portfolio and scale its distribution footprint. The round included Rs 7.6 crore in equity and Rs 1.1 crore in venture debt.

The New Delhi-based startup, founded in 2023 by Arjun Singh and Animesh Mishra, is part of a new wave of direct-to-consumer brands that are positioning premium Indian design for an affluent, urban consumer base.

The equity infusion was led by Zeropearl VC, and drew participation from a number of well-known founders and early-stage investors, including Bounce’s Vivekananda Hallekere, Yogabar’s Suhasini Sampath, Jar’s Nishchay AG, and Renee Cosmetics founder Ashutosh Valani. Micro-VCs such as Untitled Ventures and Atrium Ventures also took part, while Stride Ventures led the debt investment.

Prior to this round, Gully Labs had raised Rs 1.1 crore in a pre-seed equity round last year. The startup, which began with handcrafted sneakers featuring Phulkari embroidery and motifs inspired by regional Indian festivals, is looking to build on its cultural design-first positioning. It plans to use the new capital to grow its product line, open exclusive retail stores, and deepen its presence in India’s fashion-forward metro markets.

“This round is a big step forward for us. We have always believed that Indian stories deserve a global stage not just in art and cinema, but in products people use and wear every day. With this backing, we are excited to scale our vision, grow our team, expand into physical retail, and bring even more culturally rooted, design-led sneakers to people across India and beyond. Above all, having the trust of such seasoned founders and investors gives us both confidence and responsibility as we build the next chapter of Gully Labs,” Arjun Singh and Animesh Mishra said.

Bipin Shah, Founder & Managing Partner, Zeropearl VC, said, “At Zeropearl VC, we focus on backing brands that are authentically rooted in India, with strong design and product moats. Our Indiluxe thesis believes India’s affluent consumers should embrace premium homegrown brands over foreign ones. Gully Labs embodies this spirit — taking India’s rich cultural story to the world through sneakers that are 100% made in India. We’re proud to support their journey toward becoming a global ambassador of Indian craftsmanship.”