New fashion startup Lyskraft got a big boost with $26 million in seed funding. It was started by Mohit Gupta, one of the founders of Zomato, and Mukesh Bansal, who co-founded Myntra and Cultfit. The money came from Peak XV Partners, which led the round, along with Prosus, Sofina, and partners of DST Global. Some well-known names also chipped in, like Deep Kalra and Rajesh Magow from MakeMyTrip and Deepinder Goyal, the founder and CEO of Zomato.
Lyskraft has been secretly working on its project for a while, but now they’ve launched with a splash. They recently opened a fancy store in Ambience Mall Gurugram and set up an online platform. You can browse and buy clothes from over 15 handpicked women’s fashion brands and designers on their website. They’re constantly adding new designers every week to keep things fresh. Currently, Lyskraft is focused on women’s fashion, but they have plans to expand into other lifestyle categories.
Lyskraft Changing Fashion Shopping
Lyskraft, a new fashion company, will have its main office in Gurugram. Mohit will be the CEO, and Mukesh will be a co-founder and advisor. Mohit believes that the future of shopping is about using both online and offline methods, especially for fancy clothes where customers want to touch and see the products. He also thinks that India’s history of making clothes and being creative gives us a good chance to do well globally.
Even though it’s hard to get money for new companies, Lyskraft got $26 million in funding, making it one of the top-funded startups this year. Some other startups, like Ema and Neysa, also got a lot of money in the AI field. This year, a lot of money has been given to startups, including Origami, Optimo Loan, LightFury Games, and Veera.
Lyskraft’s Growth and Competition
Last year, news came out that Bansal and Gupta were close to getting $50 million in Series A funding from investors like Peak XV Partners and Accel. This funding would value their company at $100 million after the funding. Their startup faces competition from other companies like Newme, Absolute Brands, Snitch, Styched, and Virgio.
This recent funding round for Lyskraft is one of the biggest for an early-stage Indian startup, especially at a time when getting money is hard for startups. Bansal, who knows a lot about online shopping, also invested in Virgio, a fashion website for young people run by Amar Nagaram, a former Myntra executive.
Mohit Gupta’s Move and the Rise of Gen Z Shopping
Mohit Gupta left Zomato in 2022. He was the CEO of Zomato’s food delivery department and then became a co-founder in 2020. This change happened when many online shopping companies started paying more attention to young people, especially Gen Z shoppers. Flipkart, for example, added SPOYL to its app, a fashion section just for Gen Z. Myntra also launched FWD, a special fashion website hoping to get 10 million Gen Z users in two years.
Earlier this year, a startup called Newme, focusing on Gen Z fashion, got $5.4 million in funding from investors like Fireside Ventures, AUM Ventures, 2AM Ventures, and Allin Capital. According to a report by Inc42, the fashion market in India was worth $20 billion in 2022. They think it’ll grow to $112 billion by 2030, a big chunk of India’s $400 billion online shopping market.
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