The direct-to-consumer (D2C) firm did not disclose the valuation at which the fundraise took place. Snitch had earlier raised a much smaller funding round from a clutch of angel investors, including Lenskart founder Peyush Bansal and Boat founder Aman Gupta. Ashish Wadhwani, cofounder and managing partner of IvyCap Ventures, will join the Snitch board on its behalf, Snitch said in a statement.
With a store already in operation in Bengaluru, Snitch will use the fresh funds to expand its offline footprint, besides making hires and improving its tech capabilities. The company aims to open over 100 stores over the next four to five years, it said in the statement announcing the fundraising.
“Our decision to invest in Snitch is rooted in our belief in their visionary approach to fast fashion. Snitch’s impressive performance, especially in a challenging economic landscape, is a testament to its innovative business model and deep understanding of consumer needs,” said Tuck Lye Koh, founding partner at SWC Global.
In fast fashion, brands quickly introduce apparel that reflects an ongoing fashion trend, and then move on to newer designs rapidly as trends shift, often retiring the out-of-trend designs.
In November, Snitch founder Siddharth Dungarwal had reportedly said that the firm was looking to open 7-8 offline stores this fiscal year, and take the number of stores to 22 in the next financial year. Snitch had also reached Rs 110 crore in revenue in FY23, up from the Rs 44 crore it had made in FY22, and was looking to end FY24 with revenue of Rs 250 crore, Dungarwal had said at the time.
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Vikram Gupta, Founder and Managing Partner of IvyCap Ventures, said that Snitch’s “differentiated approach set them apart in their segment”, and that the venture firm had decided to invest in Snitch because of “their ability to not just stay on top of the trends but to create them, propelling them to the forefront of their industry.”Snitch operates in the fast fashion segment, where large players like H&M and Zudio also operate. The fundraise comes just over a month after Honasa Consumer, the parent entity of D2C brand Mamaearth, had an initial public offering in early November.
This year, while D2C firms such as Freakins and Inc5 Shoes have raised funds amid the ongoing funding winter, others, including Chumbak, had to merge with larger firms. Virgio, meanwhile, had to junk its plans and radically change its business model.
