[Funding Alert] D2C Activewear brand BlissClub raises $15 Mn Series A funding led by Eight Roads

BlissClub

Indian Direct-to-consumer (D2C) activewear brand BlissClub raised $15 million in its Series A round led by Eight Roads Ventures and existing investor Elevation Capital, the startup stated.

The round also saw participation from angel investors such as Swiggy CEO Sriharsha Majety, Mamaearth Co-founder Ghazal Alagh, Licious Co-founders Vivek Gupta and Abhay Hanjura, former Myntra CEO Amar Nagaram, SoftBank executives Sumer Juneja and Munish Varma, Shopify executive Brennan Loh, and global fashion influencer Masoom Minawala.

The funding comes when several D2C brands are experiencing growth and flatten as demand falls. BlissClub did not disclose its valuation post the funding round. 

Since the startup secured $2.25 million in seed funding in May 2021, it has seen its sales have grown 25 times, the company said in a statement.

The startup creates fitness and wellness apparel for women and will use the funds to build its app, research and development, marketing and brand building, and expand its team, which has 70 members. 

BlissClub founder and CEO, Minu Margeret said that she aims to clock an annual revenue run-rate of INR 100 crore over the next six months. Annual revenue run rate is a forecasting method that helps predict the financial performance of a company over a year based on past earnings.

Margeret, an ISB alumna, and a national-level frisbee player founded BlissClub as a community-first brand.

Margeret, who worked with PhonePe, ABInBev, and HUL before founding BlissClub, said, “Right now, the price range of our product would be around INR 2,000 which we plan to bring down to INR 1,500.”

The brand would focus on the fitness and wellness of women and build products around it, she said. The brand has a strong metro presence and 90 percent of its sales are through its website while the rest comes from Amazon India and Myntra.

Margeret added, “I think it started as an observation which became what we built out as BlissClub….Whoever is building for activewear is building for performance, which is 45 minutes in the gym. If you look at the Indian market, you see many women do not go to the gym six days a week but have other activities like dropping kids off the school bus and doing some gardening. All this is an active lifestyle without going to the gym. “

She further explained, “That became the insight, how do we build for 99% of the women for eight hours in a day, where they can marry the functionality of performance and comfort.”

BlissClub grew by 45% manufacturing operation management (MOM) with only ten products, supported by a growing customer base.

She said that the company will further invest in its technology team, expand into offline channels, and research and development.

Margeret added, “From a growth and channel point of view, we were a community before we had a product…Building a commerce app for a D2C brand is a no-brainer. What we are building is commerce plus community kind of play with our app. So a large part of the funding will go into building out our tech team, building out the app.”

She also said more than half of the team, 55%, are women that hold over 60% of leadership roles.

Shweta Bhatia, Partner and Head of Technology Investments India at Eight Roads Ventures, said, 

“Activewear has become one of the fastest-growing apparel categories globally, including in India, driven by an increasing interest in fitness and shift towards comfortable clothing. BlissClub has received unparalleled customer love and it’s not surprising that they are one of the fastest-growing D2C brands in India today.”

The overall funding in the D2C space has increased to $153.4 million this March quarter from $105 million a year ago. While the number of deals remains flat, the ticket size has increased considerably.

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