Libas Secures $18 million Funding for Omnichannel Expansion

Libas, owned by Zivore Apparel, has secured $18 million from IAF Series 5, a fund managed by ICICI Venture for expanding its omnichannel presence in the ethnic wear market, capitalizing on increasing consumer spending to drive further expansion.

The women’s clothing brand aims to achieve INR 1,000 crore in sales over the next two years, according to Founder and CEO Siddhant Keshwani. This is the first external funding for the decade-old company. This fresh capital will help strengthen Libas’s omnichannel presence by enhancing its digital platform and accelerating offline expansion.

Libas, a fast fashion ethnic wear brand, started as a D2C brand in 2014. It plans to expand its network to 150 physical stores within 3-5 years. The brand will focus initially on metros but recognizes growth potential in tier II and III cities, using data-driven insights to strategically target these areas.

Libas’s Omnichannel Expansion

Libas will adopt a company-owned, company-operated (COCO) model for its stores, prioritizing metro cities and select smaller towns with a solid online presence. The company’s digital presence accounts for 80-85 percent of sales, while offline sales contribute 10-15 percent.

Libas plans to expand internationally, targeting the Indian diaspora in the UK, USA, UAE, and Australia through its online platform. The brand recently appointed Bollywood actress Kiara Advani as its brand ambassador, further boosting its market appeal.

Keshwani noted signs of recovery in the apparel market, with an upward trend in consumer spending, particularly as the festive season approaches. Libas, which crossed INR 500 crore in revenue for the financial year ending March 2024, remains optimistic about future growth despite recent economic challenges.

Comparative Industry Context

Several fast fashion brands, including Newme, DSLR, French Crown, and Virgio, have raised funds in recent years. Libas’s growth trajectory appears promising, having posted INR 365 crore in operating revenue and INR 13.8 crore in profit for the fiscal year ending March 2023.

By securing significant funding and leveraging an omnichannel strategy, Libas aims to enhance its domestic and international market presence. The company’s strategic expansion and robust market outlook signal a bright future for the fast fashion ethnic wear brand.

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