Fashion Startup KNOT Secures $3 Million Funding to Scale Operations Beyond Mumbai

Approximately one and a half months after Inc42 reported that quick fashion startup KNOT would be seeking new capital, the startup announced the closure of its pre-Series A round with a fresh funding amounting to $3 million.  Kae Capital spearheaded the round, which included contributions from Sparrow Capital, Boundless VC, Aukera Jewellery’s Kumar Saurabh, and existing investors WEH Ventures and All In Capital.

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KNOT announced that it plans to use the new funding to intensify its focus on product development, expand its operations beyond Mumbai, and increase the number of brand partnerships it has.

The startup asserts that it has collaborated with more than 70 leading brands, including SNITCH, Bonkers Corner, The Souled Store, The Bear House, and Off Duty, since its inception.  Additionally, it stated that it currently processes thousands of orders each month.

As reported by media, KNOT, a fast-fashion startup founded by Archit Nanda and Rachit Bansal, is negotiating to secure approximately $3 million in its first funding round, which Kae Capital is leading.

The sources added that the discussions have progressed considerably and that a closure of the round is anticipated shortly.

WEH Ventures and All In Capital will also participate in the round.

Until this story was published, KNOT and Kae Capital had not responded to inquiries regarding the funding round.

KNOT is a spin-off from Slick, Nanda, and Bansal’s earlier startup that enabled users to give each other anonymous compliments.  Slick intended to bring back personal connections on social media and enhance users’ self-assurance.  It secured $2.1 million in funding from WEH Ventures, iSeed Ventures, All InCapital, and Titan Capital.

Despite the social media platform reaching 2 million users, monetization was challenging because its main target demographic – college students – had a limited ability to spend.  Since the model was unsuccessful, the founders started to pinpoint more urgent issues they could address, while keeping investors informed about progress.

KNOT provides customers with fashion items within a 60-minute timeframe.  The startup employs a “Try Before You Buy” model, giving users the opportunity to try on clothes prior to deciding on a purchase.  The goal of this approach is to get rid of lengthy waits and buyer’s remorse.

KNOT functions on a marketplace model, compensating brands only post-sale without any initial commitments.  The platform has welcomed several D2C brands, including Snitch and The Souled Store, among others.

The startup is currently functioning in Mumbai and intends to roll out its service in Delhi in the next few months.

The quick commerce segment is evolving at a fast pace, and the desire for instant gratification has expanded beyond just groceries or food—consumers now anticipate rapid delivery of a diverse array of products.  Fashion is among the industries where this trend is rapidly emerging.

Over the last year, a number of startups have arisen that aim to shake up the fashion sector through rapid deliveries.  As an example, Slikk, a quick commerce platform centered on fashion, has recently secured $10 million (INR 85.12 crore) in its Series A funding round, which was spearheaded by Nexus Venture Partners.

Bengaluru-based Blip is another early mover that was one of the first to try out quick fashion delivery.  The launch of its M-Now service by ecommerce giant Myntra also entered the competition, further intensifying the rivalry in this area.

NEWME, a fast fashion brand, announced earlier this week the launch of its 60-minute delivery service, NEWME Zip, in Bengaluru, after it proved successful in Delhi.  Initially, the service was tested in the national capital, featuring a 90-minute delivery timeline.  Motivated by how well it was received, NEWME has now expanded its operations to Bengaluru, providing swifter delivery.

Although quick commerce has shown success in various categories, the fashion sector is still in its infancy, with both established companies and emerging startups trying to make the model work.

The rapidly expanding Indian quick commerce market is at the core of this, with expectations of it evolving into a $40 billion opportunity by 2030.