Bagzone Lifestyles Pvt. Ltd, which owns the handbag brand Lavie, raised $9 million (around Rs 75 crore) in its first ever institutional funding round since its inception in 2010.
The round was led by homegrown private equity company First Bridge which will deploy capital for Lavie via its India Growth Fund.
“Lavie comes with a long track record of building successful consumer businesses,” said Ayush Tainwala, chief executive of Bagzone.
“We hope to grow 10x in the next few years and become a multi-category, multi-brand business. We will use the funds raised to enhance our in-house manufacturing capability, deepen our offline presence and grow the brand’s stature and recall," he added.
Bagzone will look to establish a 150,000 sq ft factory. It will also look to expand its offline presence by setting a target to open 300 exclusive outlets, it said in a statement.
Bagzone, founded by Shobha Tainwala and currently under the leadership of Ayush Tainwala, offers products ranging from handbags to wallets and travel accessories through its portfolio of brands: Lavie, Lavie Sport, and Lavie Luxe. It already has an R&D and manufacturing facility in Nashik, which is the largest integrated facility in South Asia, spread across five acres.
As per its latest available financial details, Bagzone reported a profit of Rs 1.6 crore and a consolidated revenue of Rs 281 crore in FY22, according to VCCEdge, the data intelligence platform of VCCircle.
“Lavie operates in a market that will benefit from the shift to organised and an exponential increase in women’s consumption over the next few years,” Vishal Kumar Gupta, managing partner of First Bridge, said.
“We are confident of a successful journey of hyper-growth with Lavie."
