Direct-to-consumer athleisure brand Cava Athleisure has raised Rs. 40 crore (US $ 4.35 million) in a Series A funding round led by Sharrp Ventures, which contributed Rs. 21 crore (US $ 2.28 million). The round also saw participation from V3 Ventures and existing investor Spring Marketing Capital.
Following the fundraise, the company has been valued at Rs. 215 crore (US $ 23.39 million), according to co-founders Ria Mittal and Shreya Mittal. They said the capital would be deployed to accelerate offline retail expansion, diversify the product portfolio and strengthen the leadership team as the business prepares to scale.
The co-founders said the current funding round was focused on building scale through offline expansion, team development and entry into new sub-categories, while maintaining capital efficiency. After the investment, the founders continue to hold approximately 65–70% of the business.
At present, around 65% of Cava Athleisure’s revenue is generated through its direct-to-consumer website, while approximately 30% comes from online marketplaces, led primarily by Myntra. The remaining 5% is contributed by quick commerce and business-to-business channels, including platforms such as Zepto.
The company is set to open its first physical retail store next month at Orion Mall in Bengaluru. The outlet will span 1,200 sq.ft. of carpet area. The co-founders said the focus for the current calendar year would be on establishing four to five stores, primarily within Bengaluru, before accelerating expansion further in the following year. They added that stores were expected to achieve break-even within 18 to 24 months of operation.
Cava Athleisure is also in the process of setting up an in-house manufacturing facility in Bengaluru, which, at full capacity, is expected to produce between 30,000 and 35,000 units per month. The brand currently offers around 100 unique stock-keeping units and plans to introduce nearly 200 new styles during the year.
The company closed the previous financial year with revenue of Rs. 8 crore (US $ 870,000) and is targeting Rs. 40 crore (US $ 4.35 million) by the end of the current financial year, rising to Rs. 130 crore (US $ 14.14 million) by the end of the next financial year. The founders said the business had been operating at an EBITDA profitability of 2–5% in recent months and was aiming to reach EBITDA margins of around 15% as monthly recurring revenue approaches Rs. 10–15 crore (US $ 1.08 million – US $ 1.63 million), potentially by next year.
Cava Athleisure had earlier raised Rs. 10 crore (US $ 1.08 million) in June 2024 in a round led by Spring Marketing Capital, with participation from angel investors including the founders of Manyavar and Groww.
