Bengaluru-based lifestyle retailer Chumbak Design has raised Rs 85 crore led by private equity firm Gaja Capital. The funding round also saw participation from startup’s existing investors, which includes, venture capital firms Matrix Partners India and Seedfund.
Gaja Capital has invested about Rs 52 crore, while Matrix Partners and Seedfund have put in Rs 22 crore and about Rs 6 crore respectively, reported ET.
The startup will deploy the proceeds towards expanding its footprints across the country, as well as its product portfolio.
Chumbak was founded in 2009 by Vivek Prabhakar and his wife Shubhra Chadda. Prabhakar worked at Sun Microsystems, Motorola, Fabmart, and Titan while Shubhra had earlier worked at Nortel Networks and NetApp.
Chumbak introduced a separate line of clothing in October 2015. Prior to that, the company was focused on selling magnets, accessories and home décor products.
Chumbak has its own design and marketing cells but sub-contracts the entire manufacturing of its products. It also sells accessories, home décor items, and apparels through its exclusive stores and online marketplaces, including Flipkart, Myntra, Jabong, and Amazon.
As per the company claims, it sells its merchandise at 18 exclusive stores across 11 cities in India, including Delhi, Mumbai, Bangalore, Hyderabad, Chennai, Kochi, and Jaipur. It is also planning to double the offline exclusive store by the end of 2017.
Till date, the company is believed to have raised about Rs 124 crore, the latest being Rs 11 crore via equity and debt funding between November 2016 and May this year.
In November last year, Chumbak raised Rs 3 crore from operating partner at Gaja Capital Narayan Ramachandran, who has also invested in the current round in his personal capacity. Prior to that, it raised $2 million from Seedfund India and had raised Rs 30 crore of investment from venture capital fund Matrix Partners in 2014.
Chumbak was once selected by search giant Google as one of three companies worldwide for a case study on how companies have successfully used Google services.