VCs warm up to quick-fashion delivery startups as Knot, Zulu Club raise fresh capital
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Funding momentum is building up in the quick-fashion delivery space, as investors double down on early-stage startups focused on fast-moving fashion products with shorter turnaround times.Mumbai-based quick-fashion delivery startup Knot has raised a $3 million round led by Kae Capital , with participation from Sparrow Capital, founder Archit Nanda told ET in an interaction. The round also saw participation from the founders of D2C brands Snitch, Souled Store and Bonkers Corner, as well as lab grown diamond jewellery company Aukera.Knot plans to use the capital to expand beyond Mumbai to cities such as New Delhi, Bengaluru, and Pune, strengthen its product capabilities, and onboard additional partner brands. It was founded earlier this year by Nanda and Rachit Bansal, following a pivot from their previous social networking startup, Slick.The startup has partnered with more than 70 brands, including Snitch,The Souled Store, The Bear House, and Off Duty.Gurugram-based fashion commerce platform Zulu Club has also closed $250,000 in funding from early-stage venture capital firm TDV Partners.'Shopping behaviour has fundamentally shifted. Earlier, it was more casual, when people would scroll through a website or walk into a store and figure out an occasion to wear something later. Now, shopping is very event-driven, and moods are shaped by what users see on their Instagram feed,' said Nanda.This comes as new-age brands such as Newme, Slikk, and Snitch, along with ecommerce platforms Myntra, Ajio, and Nykaa , explore ultra-fast delivery for fashion and apparel.Slikk, which offers 60-minute delivery, recently raised $10 million in a round led by Nexus Venture Partners . Snitch secured $40 million from 360 One Asset with plans to enter quick commerce. Meanwhile, omnichannel fashion brand Newme, which targets Gen Z consumers, raised $18 million in a round led by Accel , with participation from existing investors Fireside Ventures and AUM Ventures, as reported by ET.'Quick commerce has revolutionised the way we purchase groceries and essentials and it's extended to a few other categories beyond your daily provisions,' said Sunitha Viswanathan, partner at Kae Capital. 'However, fashion commerce has not been reimagined since the yesteryears when Myntra and others entered the space. It has continued to remain the same.''There needs to be a new platform-led approach. Gen Z cares about tight curation, fast delivery, and quick returns so that their money doesn't get blocked,' she added.
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