The researchers said that the "predictable" share of this enormous equity fund flow is around half.
The founder and CEO of women's apparel company Libas, Siddhant Keshwani, said that the company hopes to increase its sales to Rs 1,000 crore in the next two years after announcing on Thursday that it has secured finance of Rs 150 crore.
The firm that owns the Libas brand, Zivore Apparel, said on Thursday that its first external fundraising round has closed. IAF Series 5, an ICICI Venture fund, contributed Rs 150 crore to the venture.
The infusion of this new funding is anticipated to speed up Libas's offline development while enhancing its present digital presence to assist the company establish an omnichannel presence.
Regarding the clothing industry, Keshwani claimed to be seeing a "sign of recovery" as well as an increase in consumer spending in the fast fashion sector.
The fast-fashion ethnic apparel company, which began as a direct-to-consumer (D2C) brand in 2014, has embraced an omnichannel approach and plans to open 150 physical locations over the course of the next three to five years.
Libas acknowledges the potential for development in tier II and tier III cities and is using data-driven insights to strategically target these places going forward, even if its current concentration is on metros for brick-and-mortar expansion.
He said, "The company is implementing the company-owned, company-operated (COCO) model for its stores, initially targeting major cities and a few smaller towns with a robust online presence and clientele."
In addition to the local market, Libas has plans for the global market. It specifically wants to reach the Indian diaspora in places like the UK, USA, UAE, and Australia, where it now has an internet presence.
"We are targeting domestically that we should close FY26 at about Rs 1,000 crore net revenue -- which is generated through our offline channels as well as, of course, online as well," Keshwani said to PTI in response to a question about the increase.
In the fiscal year that concluded in March 2024, the firm exceeded the revenue milestone of Rs 500 crore. At the moment, 80–85% of our revenue comes from online sales, with the remaining 10–15% coming from physical sales, he stated.
"However, we aim to achieve a more reasonable distribution, targeting 50-60 per cent online as well as 30-40 per cent offline sales in the next two to three years," Keshwani said.
Currently, tier II, tier III, and lower towns account for the remaining 50–55 percent of Libas' business, with the metro areas contributing the remaining percentage.
Keshwani said that there are "signs of recovery" when questioned about the state of the market and the demand for clothing, which has seen a slump in demand as consumers tightened their budgets and put off discretionary buying.
"Despite the current economic downturn, there are indications of improvement and a rising trend in consumer spending, especially as the holiday season draws near. We continue to be cautiously optimistic about the industry's potential for future development," he said.
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