Internet first direct-to-consumer luggage brand Mokobara has raised $12 million (Rs 100 crore) in its latest round of funding led by Peak XV Partners (formerly Sequoia Capital India), at a valuation of $80 million post-money.
ET was the first to report in September 2023 about a potential investment of $12-15 million in Mokobara led by Peak XV Partners at a valuation of $65-80 million.
Mokobara’s existing backers Sauce VC and Saama Capital have also participated in the Series B funding round. Of the $12 million, around $9.4 million has been invested by Peak XV Partners, while the remaining was put in by the other two investors, according to regulatory filings made by the startup with the Registrar of Companies (RoC).
Founded in 2020 by former Urban Ladder executives Sangeet Agrawal and Navin Parwal, the luggage and travel accessories brand has so far raised $20 million, including the latest round. In October 2023, Mokobara had last raised $3.6 million from Sauce VC and Saama Capital.
The Bengaluru-based startup also counts Mamaearth cofounder and CEO Varun Alagh, Urban Ladder founder and CEO Ashish Goel, and LivSpace founder and COO Ramakant Sharma on its cap table.
In FY23, Mokobara saw its operating revenue grow over four times to Rs 53 crore, while its losses widened 78% to Rs 8 crore, ET had reported on December 27. The omnichannel retailer brand runs multiple stores in Bengaluru, Delhi, Mumbai and Pune. In a statement in November 2023, it said it would open 25 stores by this April.
Mokobara, which operates in the mid-premium segment, competes with players including incumbents such as American Tourister and startups such as Nasher Miles.
According to an August 2023 research note by Crisil, India’s luggage industry revenue is set to rise around 15% year-on-year in the ongoing fiscal – despite a high-base effect of 40% growth last fiscal – on the back of rising penetration of hard luggage produced by the organised sector, and continuing growth in tourism and corporate travel.
Mokobara’s fundraise comes at a time when risk capital investors are increasingly turning towards consumer brands away from tech companies owing to high valuations commanded by technology startups.
“The consumption story in India has always been strong…the tech story gained momentum because venture investors focused on tech came to India with billions of dollars to invest…but India’s consumption metrics continue to be robust,” a New Delhi-based consumer-focused venture investor told ET.
“For investors, the thesis is very clear. In any sector, there is enough space for consumer brands to scale and become large…India also has enough number of large brands across categories and segments that can come in as strategic investors opening up an exit route for early-stage investors,” the person added.
