D2C apparel startup Bummer raises Rs 9.25 crore led by Nikhil Kamath's Gruhas Collective

Shark Tank India-featured Direct-to-consumer (D2C) innerwear startup Bummer has raised Rs 9.25 crore (or approx $1.1 million) in a pre-Series A1 funding round.

The round was led by Zerodha co-founder Nikhil Kamath's Gruhas Collective Consumer Fund, with participation from existing investor Fluid Ventures. The infusion of funds is earmarked for the brand's expansion, particularly focusing on enhancing its omnichannel presence.

Focused on expansion 

Following this round of funding, Bummer will focus on broadening its market reach, specifically targeting Tier-II, III, and IV cities. It aims to derive 50% of its revenue from cities including Ahmedabad, Indore, Hyderabad, Chandigarh, Bhopal, and Jaipur. This strategic move is expected to significantly boost Bummer's market penetration and customer base.

What does Bummer do?

Founded in 2020 by Sulay Lavsi, Bummer is known for its innovative approach to innerwear, offering products like bikinis, bralettes, hipsters, shorts, boxers, trunks, briefs, pyjamas, and loungewear.

The startup claims that it uses micromodal fibres derived from beechwood trees to ensure the production of soft, lightweight, and sustainable products. Notably, the approach to quality and sustainability has been a key factor in Bummer's 175% year-on-year revenue growth in the financial year 2022-23.

Exploring other Asian markets 

Sulay Lavsi, founder and CEO of Bummer, said, "The support and leadership from Gruhas Collective Consumer Fund and Fluid Ventures fuel our vision of expanding with a skilled managerial team. In an industry marked by minimal growth and dominated by a few major players for decades, we see ourselves as a disruptor of this category." 

The startup is also exploring opportunities to launch its products in other Asian markets within the next two years, allocating 5% of its budget to these pilot projects.

Industry and market dynamics

Gruhas Collective Consumer Fund's co-founder, Abhijit Pai, remarked on the investment, "We believe that Bummer’s innovative approach, coupled with its quality products and edgy new-age design, is perfectly positioned to capture the Gen-Z market."

The investment is part of a larger trend where the D2C market in India is expected to reach a size of $100 billion by 2025, driven by significant shifts in consumer behaviour and technological advancements. Notably, the growth is fueled by over 800 new-age brands in India adopting the D2C route, moving away from traditional middlemen to directly reach consumers.