Lyskraft, By Mohit Gupta & Mukesh Bansal, Bags $26 Mn in Seed Funding By Elets News Network - 27 April 2024

Mohit Gupta, Mukesh Bansal

Former Zomato senior executive Mohit Gupta and Myntra co-founder Mukesh Bansal have successfully raised $26 million in seed funding for their new venture, Lyskraft, an omnichannel fashion startup. This funding round is notable as one of the largest early-stage investments for an Indian startup, particularly during reduced funding activity.

The substantial seed funding underscores investors’ continued interest in supporting new ventures led by experienced entrepreneurs and seasoned executives. Notable investors in this round include global tech investor Prosus, Belgian investment fund Sofina, and partners of DST Global. According to Gupta, travel industry veterans from MakeMyTrip, Deep Kalra Rajesh Magow, and Zomato founder Deepinder Goyal participated in the round.

Lyskraft, headquartered in Gurgaon, will see Gupta taking the helm as CEO, while Bansal will serve as a strategic advisor and shareholder without any operational role in the company. Bansal, who previously founded fashion e-commerce giant Myntra and fitness startup Cultfit, is currently focusing on a new project in deep tech and artificial intelligence.

Gupta highlighted that the growing premiumisation trend across consumer categories influenced the decision to target the high-end market with Lyskraft. He emphasised the need for a unique approach to the premium fashion category, particularly women’s fashion, which he believes will significantly grow over the next 5-10 years. According to him, the omnichannel strategy is essential, combining online and offline elements to address the market’s needs fully.

Gupta, who departed Zomato in November 2022 after contributing significantly to its food-delivery business, brings extensive experience from his previous roles, including a decade at Makemytrip and time at PepsiCo India. Under his leadership, Lyskraft has partnered with 15 brands in the premium women’s apparel category and plans to compete with established players like Nykaa Fashion, Myntra, Ajio, and Tata Cliq.

Gupta explained that choosing an omnichannel route from the outset allows Lyskraft to focus on solving consumer and category problems rather than being limited to specific sales channels. He added that the company’s strategy includes a curated approach to online and offline presence, considering the logistical limitations of the brick-and-mortar ecosystem and the strategic disadvantages of an open marketplace model.

Also Read | Nirmalaya raises $800k in seed funding round led by Artha Venture Fund

With the Indian fashion market poised for significant growth—projected to reach $12-15 billion in six to seven years in the premium segment alone—Lyskraft aims to carve out a substantial niche in this burgeoning industry.

Related News