Fashion Startup Lyskraft, Co-founded by Former Zomato Exec and Myntra Founder, Raises $26 Mn

Lyskraft, a fashion startup blending online and offline experiences, spearheaded by former Zomato executive Mohit Gupta and Myntra’s founder Mukesh Bansal, has recently secured $26 million (approximately INR 216 crore) in its initial funding round led by Peak XV Partners.

According to a report from ET, this fresh infusion of capital will fuel their vision of creating a marketplace where premium brands converge, beginning with women’s fashion and later branching out into various lifestyle sectors.

In the past year, news surfaced about Bansal and Gupta being on the brink of finalizing a $50 million Series A funding round with investors like Peak XV Partners and Accel. Their startup, in competition with notable players such as Newme, Absolute Brands, Snitch, Styched, and Virgio, was evaluated at $100 million post-investment.

This funding round stands out as one of the most significant early-stage investments in an Indian startup during a period of tight funding.

Related: E-commerce Platform Myntra Achieves Positive EBITDA in Q4 2023

Bansal, renowned for his wealth of experience in ecommerce, has ventured into investing in Virgio, a fashion platform geared towards the younger generation, spearheaded by the former Myntra executive, Amar Nagaram.

Gupta bid farewell to Zomato in 2022, having previously helmed the company’s food delivery division as CEO, before transitioning into the role of co-founder back in 2020.

This unfolding comes amidst a notable surge in attention towards Gen Z consumers among various ecommerce enterprises. Notably, Flipkart rolled out SPOYL last year, a fashion-centric section within its app, finely tuned to cater to this demographic.

Myntra has recently introduced FWD, a specialized fashion platform with the goal of capturing the interest of 10 million Generation Z users within the next two years.

In a separate development, earlier this year, Newme, a fashion and apparel startup targeting Generation Z, secured seed funding of INR 45 crore (approximately $5.4 million). The funding round was led by venture fund Fireside Ventures, with contributions from AUM Ventures, 2AM Ventures, and Allin Capital.

In 2022, the fashion and apparel industry in India was valued at $20 billion, and it is expected to grow to $112 billion by 2030. This sector is projected to represent more than a quarter of the country’s $400 billion ecommerce market.

Lyskraft, co-founded by Mohit Gupta and Mukesh Bansal, has secured $26 Mn in seed funding led by Peak XV Partners. The investment will fuel their omnichannel marketplace for premium brands, starting with women’s fashion. Previously eyeing a $50 Mn Series A round, the startup competes with Newme, Absolute Brands, and others. Mukesh Bansal has also invested in Virgio, targeting Gen Z, while ecommerce giants like Flipkart and Myntra focus on this demographic. With the Indian fashion market projected to grow significantly, startups like Lyskraft are poised for expansion.