Snitch, a fast fashion direct-to-consumer (D2C) startup, has secured Rs 340 crore — around $40 million — in a mix of primary and secondary rounds to fuel expansion and increase its retail footprint.
The primary portion was led by 360 One Asset with participation from Ravi Modi, founder of Vedant Fashions, which runs traditional ethnic brand Manyavar, founder Siddharth Dungarwal said on social media on June 2.
Existing investors such as SWC and IvyCap Ventures also participated in the round, which propelled the company's valuation to about Rs 2,500 crore from around Rs 500 crore in December 2023.
Of the Rs 340 crore, Bengaluru-based Snitch raised about Rs 280 crore in primary capital and the remaining Rs 60 crore or so came in the form of secondaries where early investors sold some shares to make way for new ones.
This round comes after Snitch raised Rs 110 crore in its Series A round in December 2023.
Snitch, which some investors say is building the online Zudio, targets the Gen Z crowd, a cohort of users who are more inclined towards fast fashion where design takes precedence over quality.
In fast fashion, where companies like Zara, H&M and Tata's Zudio are active, clothes are typically not repeated several times and are discarded after being used a few times. While some companies are against the idea, the others see a bright future.
Snitch, which rose to fame after raising money on Shark Tank, clocked Rs 243 crore in revenues and generated a profit of Rs 4.4 crore in FY24, according to Tracxn, a private markets data provider. The company is yet to file its FY25 results.
Before the current round, founder Dungarwal had 50.3 percent equity in the company. IvyCap and SWC, which have backed several consumer tech companies such as Meesho, Country Delight, Sharechat and Kuku FM in India, each held 10 percent in the company, Tracxn data shows.
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