Zouk Secures $10 Million in Series B Funding, Led by Aavishkaar Capital

Direct-to-consumer (D2C) bags and luggage brand Zouk has raised $10 million in a Series B funding round led by Aavishkaar Capital. Existing investors Stellaris Venture Partners, Titan Capital, Sharrp Ventures, and JJ Family participated. This brings Zouk’s total funding to date to $14.5 million.

The Mumbai-based startup, founded in 2015 by Disha Singh and Pradeep Krishnakumar, is known for its handmade, 100% vegan leather bags and accessories. The company offers laptop, tote handbags, sling, and wallets. Having already served over 700,000 customers, Zouk is expanding into the luggage segment with new product lines, including backpacks and trolley bags.

With this fresh capital infusion, Zouk plans to scale its operations significantly. The company aims to open 75 exclusive brand outlets across India, invest in marketing and supply chain enhancements, and expand its talent pool across multiple business functions.

Zouk has experienced rapid growth, reporting a revenue of Rs 47.41 crore for FY23, a sharp increase from Rs 21.82 crore in FY22. However, the company has also faced rising losses, which stood at Rs 10.55 crore in FY23, up from Rs 77 lakh in the previous year.

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According to industry insiders, Zouk is now valued at approximately $50 million (around Rs 400 crore), a substantial increase from its $7 million valuation in its last funding round. Lead investor Aavishkaar Capital, which has a history of backing startups like AgroStar, Milk Mantra, and GoDesi, sees significant potential in Zouk’s continued growth and market expansion.

As Zouk sees a larger footprint in the retail and luggage sectors, this funding round positions the brand to further establish itself as a sustainable fashion and accessory market leader.