India's quick fashion delivery sector attracts significant investment

The quick-fashion delivery sector in India is witnessing significant investment, with Mumbai-based startup Knot recently securing 3 million dollars in a funding round led by Kae Capital, as reported by the Economic Times. This round also saw participation from Sparrow Capital and founders of direct-to-consumer brands such as Snitch, Souled Store, Bonkers Corner, and lab-grown diamond jewelry company Aukera. Knot intends to utilise this capital to expand its operations beyond Mumbai into cities like New Delhi, Bengaluru, and Pune, enhance its product capabilities, and onboard additional partner brands.

In parallel, Gurugram-based fashion commerce platform Zulu Club recently closed a 250,000 dollars funding round from early-stage venture capital firm TDV Partners.

These recent funding activities occur as new-age brands are actively raising capital for their ultra-fast delivery models within the fashion category. Slikk, which offers 60-minute delivery, recently raised 10 million dollars in a round led by Nexus Venture Partners. Snitch secured 40 million dollars from 360 One Asset, with plans to enter quick commerce. Meanwhile, omni-channel fashion brand Newme, targeting Gen Z consumers, raised 18 million dollars in a round led by Accel, with participation from existing investors Fireside Ventures and AUM Ventures, as also reported by the Economic Times.

Despite the influx of investment and innovative models, the quick-fashion delivery sector faces significant challenges. Ansh Agarwal, co-founder of ultra-fast fashion delivery startup Blip, recently announced the closure of his venture less than a year after its launch, citing fundraising difficulties. Venture capital investors indicate that success in this competitive space is contingent upon how effectively startups manage both their supply chains and demand generation.