Libas Secures Rs 150 Crore from ICICI Venture for Expansion and Tech Development

Women’s fast fashion brand Libas has raised Rs 150 crore (approximately $18 million) in its maiden funding round from IAF Series 5, a fund managed by ICICI Venture. Founded a decade ago by Sidhant Keshwani and Sunil Keshwani, the bootstrapped venture aims to use the capital to enhance its offline retail presence and advance its technological capabilities.

Libas, which initially started as a direct-to-consumer (D2C) online brand, has successfully ventured into the offline retail market over the past 18 months, launching around 18 retail outlets. This funding will accelerate the company’s growth momentum in physical retail, according to Sidhant Keshwani, Founder and CEO of Libas. “Having profitably run the offline operations since its inception we did not want to slow down our growth momentum, and this funding will provide the acceleration,” Keshwani stated.

The company has been running a profitable operation overall, and this external funding is expected to expedite its offline expansion plans, which would have otherwise taken longer if funded internally. Over the next two years, Libas plans to expand its offline stores to 150 across various parts of the country. Keshwani emphasized that despite the rise in online shopping, traditional retail channels remain significant. “Libas too witnessed the movement of shoppers–who had experienced its online presence– to its offline stores,” he added.

Libas maintains an online presence on major platforms such as Flipkart and Myntra, while also establishing a strong offline presence through Exclusive Brand Outlets (EBOs), large format stores, and multi-brand outlets. In addition to offline expansion, the company will use the funding to scale up its technology in supply chain and D2C operations. “As a fast fashion brand, it is important to bring down the turnaround time of introducing new trends to the market, and technology is helping us do that,” Keshwani explained.

For the fiscal year 2024, Libas generated a revenue of Rs 500 crore and expects to achieve a growth rate of 40-45% in the current fiscal year. On the investment, Gagandeep S Chhina, Senior Director, Private Equity, ICICI Venture, commented, “Libas has demonstrated industry-leading growth characteristics in a capital efficient manner and plans to strengthen its digital presence while focusing on its offline expansion and omnichannel capabilities in the Indian market.”