New Delhi: Bagzone Lifestyles, the parent company of fashion accessories brand Lavie has raised USD 9 million in a funding round by First Bridge India Growth Fund, shared a top official of the company.
This is the first external funding for the bootstrapped startup, said Ayush Tainwala, CEO, Bagzone Lifestyles. He declined to share the current valuation of the company.
“We reached a point of scale and profitability where external inputs were needed. We wanted a partner who got actual skin in the game,” stated Tainwala on the company’s decision to raise external funding.
Talking to ETRetail, the chief executive shared that the brand plans to use the funds for opening more physical stores and strengthening its manufacturing capabilities.
Lavie is planning to open around 300 more stores in the next 15-18 months across tier 1 and 2 towns, he shared. The new stores will include kiosks and mid and large-format outlets. Currently, the bag maker runs 100 outlets.
The new stores will also include exclusive brand outlets for the retailer’s luxury sub-brand – ‘Lavie Luxe’, launched earlier this year to target premium customers.
The firm drives a 50-50 share of its revenue from online and offline channels, shared the CEO adding that he expects the same mix to continue going forward.
Further, Lavie is investing around Rs 60 crore in setting up a new 1,50,000-square-foot manufacturing unit. The company already has an R&D and production unit in Nashik.
