New Delhi is seeing a growing trend in venture investors backing new-age ethnic garment brands due to the increasing demand from Gen Z employees for formal ethnic wear like sarees and kurtas. Brands like Libas and Koskii have received significant investments recently, with Libas repositioning itself as an “Indian modern wear brand” to target the younger audience. With urban markets nearing saturation, these brands are now looking to smaller towns for growth. Libas, founded in 2014, achieved a revenue of ₹500 crore last fiscal year and aims to double it to ₹1,000 crore by 2026.
Suta, a Mumbai-based fashion startup, has seen success among Gen Z consumers, with revenue reaching ₹75 crore in FY24 and aiming for ₹100 crore in FY25. While the largest customer base is aged 25-35, the 18-25 segment is growing rapidly due to the popularity of Indian clothing styles. Suta also has 10 offline stores. Similarly, Gurgaon-based True Browns, founded by Udita Bansal, and Chennai-based Fashor, part of Sprout Venture Partners’ portfolio, are also approaching the ₹100-crore revenue mark for FY25. These startups demonstrate the increasing demand for urban ethnic lifestyle brands among younger consumers.
