Synopsis:
D2C denim brand Freakins has successfully raised $4 million in seed funding from investors such as Matrix Partners India and Blume Ventures. Freakins funding will be utilized to:
- strengthen the company’s supply chain capabilities,
- expand its omnichannel presence, and
- introduce new product offerings.
With a focus on fast fashion, Freakins aims to become an INR 100 crore brand by the end of 2024.
As the Indian denim market continues to flourish, Freakins competes against both international and local clothing brands. The broader fashion and apparel eCommerce market as a whole is predicted to grow significantly in the coming years.
Freakins, the D2C denimwear brand, has successfully raised an impressive $4 million in seed funding.
Who invested in the Freakins Funding?
Matrix Partners India and Blume Ventures led the funding round, which also saw participation from more than 30 angel investors, including influential individuals such as Revant Bhate of Mosaic Wellness and Utkrishta Kumar of Meesho.
What Freakins plans to do with the raised capital?
With the infusion of fresh capital, Freakins intends to strengthen its supply chain capabilities. They aim to achieve this by either owning or forging partnerships with factories specializing in denim, knits, and woven fabrics.
This strategic move will enhance their ability to deliver high-quality products.
Furthermore, the company plans to expand its omnichannel presence, recruit new talent to bolster operations, and introduce new product offerings.
The Freakins’ Story: Founders, Business model & mission
Founded in 2019 by Puneet Sehgal and Shaan Shah.
Freakins, an Indian denim wear brand based in Mumbai, is known for its boldness and comfort.
Revamped by Shaan Shah and Puneet Sehgal in 2021, along with the collaboration of Sachin Shah, Freakins fearlessly experiments with designs and materials, embodying the brand philosophy of “Dare to experiment.”
Freakins initially focused on serving the women’s denim market. However, in February of this year, they expanded into the men’s category, positioning themselves as a modern, Gen-Z denim brand.
The company differentiates itself by following an integrated business model, allowing them to maintain exceptional quality control and achieve swift turnaround times.
From storefront to design and manufacturing, Freakins want to own the entire end-to-end process, enabling them to adapt to evolving consumer preferences.
In addition to their website, Freakins currently sells their denim products through prominent online marketplaces such as Amazon, Flipkart, and Myntra. Looking ahead, the brand intends to venture into the offline retail space within the next year, although specific strategies have yet to be finalized.
With an extensive product range of over 1,500 styles across more than 35 categories, Freakins has achieved gross revenues of approximately INR 22-23 crore in the fiscal year 2023. By the end of 2024, their ambitious goal is to establish themselves as a INR 100 crore brand.
What’s the scope in the Indian fashion & apparel market?
The Indian denim market is projected to reach a staggering INR 91,894 crore by 2028, offering significant growth opportunities for brands like Freakins.
While competing with established clothing brands in India, including international giants such as Levi Strauss, Lee, and Wrangler, as well as local D2C brands like High Star (acquired by Mensa), Snitch, and Bewakoof, Freakins aims to carve out its niche in this fiercely competitive industry.
Looking beyond Freakins, the fashion and apparel e-commerce market is poised for exponential growth, with projections indicating a massive $112 billion opportunity by 2030, compared to $20 billion in 2022.
What they said on the Freakins Funding deal?
Puneet Sehgal, Founder & CEO of Freakins, emphasized the brand’s commitment to providing denimwear for diverse body types and catering to the fashion-forward youth across the country.
He said, “The funding will facilitate our expansion into new categories, further enhance our manufacturing capabilities and extend our distribution footprint. By owning the end-to-end process, from storefront to design and factories, we maintain exceptional quality control and achieve faster turnaround times, enabling us to adapt to the changing consumer preferences.”
Rajat Agarwal, Managing Director at Matrix Partners India, highlighted the immense potential in India’s consumer market, particularly as discretionary spending rises with the increase in GDP per capita. Agarwal expressed confidence in Freakins’ ability to capture the Gen Z fast fashion opportunity, applauding their supply chain innovation, product design, and influencer-led brand-building strategy.
He said, “Apparels are a key part of this discretionary basket and we believe Freakins is uniquely positioned to capture the Gen Z fast fashion opportunity. They have innovated on supply chain, product design as well as on brand building through their unique influencer-led strategy.”
Apurva Dixit, AVP Investments at Blume Ventures, described Freakins as their largest bet in consumer brands recently. Blume Ventures is known for investing in brands that demonstrate sustainable and profitable growth in sizable markets, and they see strong operational DNA and influential design sense in Puneet and Shaan. Dixit believes that Freakins has the potential to become a household name in fashion.
She said, “Apparel is an enormous albeit highly competitive category. We believe that in Puneet and Shaan, we have both strong operational DNA and an influential design sense. Freakins has the potential to be the new household name in fashion.”
Dexter Capital Advisors served as exclusive advisors in this funding round.
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