Global alternative investment manager Investcorp has led an $11.2 million (approximately Rs 79.55 crore at current exchange rates) in Bewakoof.com, a direct-to-consumer (D2C) online apparel company that focusses on providing affordable and distinctive fashion.
Investcorp India private equity co-head Gaurav Sharma said in a statement that the firm was confident in its investment considering Bewakoof’s emphasis on affordability, capital efficiency and bottom-line contribution.
The Bahrain-based firm said the investment in Bewakoof is in line with its strategy of investing in sustainable business models in the mass consumption market in India. The investment was made from its maiden India-focussed PE fund, which raised around $142 million (around Rs 1,000 crore).
The Bengaluru-based IndigoEdge acted as the advisor to the Mumbai-based Bewakoof for the investment.
Investcorp entered India’s alternative investment market with the acquisition of the PE and real estate funds businesses of IDFC Alternatives.
Apart from Bewakoof, the fund has already invested in four companies – It made its first investment of Rs 80 crore in lending firm InCred Finance in 2016. It has also backed ASG Eye Hospital, value retail chain Citykart and co-living space provider Zolo. Overall, it has deployed Rs 270 crore in the four companies.
Investcorp has $28 billion worth of assets under management across the globe, and specialises in mid-market investing in sectors such as consumer, technology, business services and industrials.
Bewakoof, which is operated by Bewakoof Brands Pvt. Ltd, was founded in 2011 by Prabhkiran Singh and Siddharth Munot. Singh said the company would continue to invest in improving customer experience and also focus on acquiring talent.
The company says it has created a robust brand by offering strong design and supply chain capabilities, which has led to sales of over 650,000 products per month and a customer base of over 4 million.
Deals in the clothing segment
There has been significant investor interest in the clothing space across price and population segments as demand for both mainstream and niche products grows.
For instance, last week, Kosha, a specialised winter wear brand, raised an undisclosed amount in seed funding from a clutch of individual and financial investors including Tres Monos Capital and Narendra Hiranandani, founder of Enhira Software.
Similarly, earlier this month, global PE investor Advent International acquired women’s innerwear maker Enamor from its founders and two PE firms for Rs 320 crore (around $45 million).