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Bagzone Lifestyles, the parent company of fashion accessories brand Lavie, has raised $9 million from the First Bridge India Growth Fund.
According to the company, the partnership helps the company in positioning itself as a market leader in the fashion accessories industry. With the handbag market close to ₹10,000 crore, it claims to hold a market share of around 5–10 per cent.
The company plans to invest the funds to expand its internal manufacturing capabilities by establishing a 1,50,000 square foot facility. Additionally, it plans to expand its offline presence with the opening of 300 exclusive brand outlets.
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Further, “we are planning to introduce a new product category by the end of this year. The production for this category is still in its initial stages,” Ayush Tainwala, CEO of Bagzone Lifestyles, said.
“We are very excited to partner with First Bridge. They come with a long track record of building many successful consumer businesses. We hope to grow 10X in the next few years and become a multi-category, multi-brand business,” Tainwala added. In FY23, it generated customer sales worth ₹500 crore.
Simultaneously, it aims to achieve a 70 per cent localisation rate in its sourcing efforts, while expanding its brick-and-mortar presence. As a result of its expansion strategy, it is expected to create employment opportunities for 1,000 individuals nationwide, directly contributing to the nation’s economic growth. In addition, it intends to penetrate Tier-2 and Tier-3 markets.
Managing Partner of First Bridge, Vishal Kumar Gupta, said, “The company operates in a market that will benefit from the shift to organised and an exponential increase in women’s consumption in the next few years. We are confident of a successful journey of hyper-growth with team Lavie.”
Also read: Pep raises $2.5 million in seed funding
According to a recent survey by Statista, the handbags segment in India is projected to reach a revenue of $4.19 billion in 2023, with an anticipated annual growth rate of 6.14 per cent from 2023 to 2026 (CAGR 2023–2026).
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