Lifestyle retailer Chumbak raises Rs 850 million in funding led by Gaja Capital

According to foreign media entrackr, Bangalore-based lifestyle retailer Chumbak Design announced that it has completed a venture capital investment of 850 million rupees, led by private equity firm Gaja Capital, and participating investors include Matrix Partners India and Seedfund, two venture capital firms that had previously invested in the company.

According to Indian media Economic Times, Gaja Capital invested about 520 million rupees, while Matrix Partners and Seedfund invested 220 million rupees and 60 million rupees respectively.

Chumbak plans to use the latest funding to expand its business across India and expand its product portfolio. The company was founded in 2009 by Vivek Prabhakar and his wife Shubhra Chadda. Prabhakar previously worked at Sun Microsystems, Motorola, Fabmart and Titan, while Shubhra worked at Nortel Networks and NetApp.

In October 2015, Chumbak launched its own clothing line. Prior to this, they mainly sold accessories and home decor products. In addition, the company has its own design and marketing department, but their production and processing operations are outsourced. Chumbak mainly sells accessories, home decor items and clothing through its stores and various online platforms (including e-commerce platforms such as Flipkart, Myntra, Jabong and Amazon).

According to the company, their merchandise sales business has covered 18 stores in 11 cities in India, including Delhi, Mumbai, Bangalore, Hyderabad, Chennai, Kochi and Jaipur. At the same time, Chumbak also plans to double the number of offline stores by the end of this year.

The company has raised a total of Rs 124 crore so far, of which Rs 110 million was raised in equity and debt financing between November last year and May this year.

Chumbak received a total of Rs 30 crore from MatrixPartners Venture Capital Fund in 2014, and in November last year, the company completed another Rs 30 million financing from Gaja Capital's operating partner Narayan Ramachandran. Prior to this, the company also raised a $2 million investment from Seedfund.

It is worth mentioning that Chumbak was once selected by search giant Google to become a classic case for training on how to use Google services. At that time, there were only three companies in the world shortlisted for this case.

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