Serial entrepreneur Mukesh Bansal, known for his founding roles in Myntra and Cultfit, is reportedly close to securing $50 million in funding for his new premium fashion venture, focusing on the Gen Z demographic, with backing from investors like Peak XV Partners and Accel.
Renowned serial entrepreneur Mukesh Bansal, known for founding the fashion e-commerce giant Myntra and fitness startup Cultfit, is reportedly on the brink of securing substantial funding for his latest venture in the realm of premium fashion, with a particular focus on Gen Z consumers.
Collaborating with former Zomato co-founder Mohit Gupta, Bansal is currently in advanced negotiations to finalize a Series A funding round of $50 million. Notable investors including Peak XV Partners and Accel are reportedly interested in joining the round, with Peak XV expected to lead the investment effort. The discussions indicate that Bansal is aiming to raise between $40 million and $50 million, valuing the new venture at an impressive $100 million post-money.
For the execution of this novel endeavor, Mohit Gupta will be stationed in Delhi to oversee operational aspects, while Mukesh Bansal will be based in Bengaluru to continue his oversight of Cultfit.
Mukesh Bansal brings a wealth of expertise to this venture, having previously established Myntra and making a significant mark in the fashion e-commerce sector. Additionally, he has invested in Virgio, a fashion destination directed towards the Gen Z demographic, founded by Amar Nagaram, a former Myntra executive.
Mohit Gupta’s experience is equally impressive, having departed from Zomato in 2022. His journey within the company saw him rise from the CEO of Zomato’s food delivery division to eventually attaining the position of co-founder in 2020.
This development aligns strategically with the growing importance of Gen Z shoppers in the e-commerce landscape. Recent initiatives, such as Flipkart’s introduction of the app-in-app fashion vertical named SPOYL, underscore the industry’s shift towards catering to the purchasing behaviors of this emerging demographic. Notably, Flipkart’s SPOYL will showcase an assortment of over 40,000 products spanning western wear, accessories, and footwear.
Myntra has also been proactive in targeting the Gen Z market by launching FWD, a distinct fashion experience portal embedded within its platform. The platform’s goal is to attract a staggering 10 million Gen Z users over the next two years.
A recent report by Bain & Co has highlighted that one out of every three online shoppers in India falls under the Gen Z category. Their initial online transactions are predominantly within the fashion realm, specifically at entry-level price points. In response to this trend, various e-commerce platforms in India have been recalibrating their strategies to effectively engage this next generation of consumers.
As of 2022, the fashion and apparel sector in India stood at a value of $20 billion. Projections indicate that by 2030, this segment will burgeon into a staggering $112 billion opportunity, accounting for over 25% of India’s $400 billion e-commerce landscape, as highlighted by Inc42’s ‘State of Indian E-commerce, Q2 2023’ report. This reaffirms the potential of the fashion industry and its pivotal role in the nation’s rapidly expanding e-commerce domain.
Overall, Mukesh Bansal’s journey as a serial entrepreneur continues to shape and influence the Indian startup landscape. His knack for identifying market gaps, assembling talented teams, and leveraging technology to address evolving consumer needs is evident in his ventures, and his latest foray into the premium fashion segment for Gen Z demonstrates his unwavering commitment to innovation and excellence.
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The Entrepreneur Today Desk