In a funding round headed by Sagar Daryani, the creator of the quick-service restaurant chain Wow Momo, men’s ethnic clothing company Kisah Apparels has raised Rs. 13 crore (US $ 1.51 million). Inflection Point Ventures and other angel investors also participated in the round.
The funds will go towards increasing Kisah Apparels’ offline presence, growing its D2C business, and making brand-building investments.
Since offline retail needs a stronger brand pull to draw customers to the stores, the goal of this funding raise is to establish an offline strategy and increase brand building investments, according to founder and CEO Yash Sarawagi.
Sarawagi and Yashwi Ladasaria founded the business in 2018 with a marketplace-first strategy, and it is currently developing into an omnichannel brand. In Kolkata, it presently operates two physical retail locations, and it intends to open three more across India.
“Our next flagship store is scheduled to open in Bengaluru by the end of July, and we opened a larger, full-format store in Kolkata two months ago,” he stated.
The business wants to create five or six outlets in Bengaluru, Hyderabad, and Gurugram, among other locations. Retail is anticipated to contribute 10–12% of the company’s sales in the current fiscal year, with a more substantial growth anticipated starting in FY ’27, according to Sarawagi.
Venture capitalists have been interested in ethnicwear companies that cater to Generation Z and offer a range of Indian clothing. Industry leaders estimate that the branded Indian ethnicwear market is worth between Rs. 30,000 (US $ 3.48 billion) and Rs. 35,000 crore (US $ 4.06 billion) and is expanding at a rate of 20 to 25%.
People between the ages of 25 and 35 are particularly fond of ethnic clothing. Though they are tired of seeing the same outfits that their fathers and grandfathers have been wearing for years, they want to embrace it. Accordingly, the primary goal is to update the category to accommodate young people’s tastes, Sarawagi continued.
While its D2C channel accounts for around 15% of the company’s income, marketplaces account for over 73%. International markets, such as those in the US and the UK, provide the remaining portion.
The start-up’s revenue increased from roughly Rs. 23 crore (US $ 2.67 million) in FY ’24 to around Rs. 50 crore (US $ 5.81 million) at the end of FY ’25. At the moment, the Kolkata-based business is operating at a run rate of about Rs. 90 crore (US $ 10.45 million) per year.
