India-based Locofast, a textile-focused supply chain platform, has raised US$15 million in a Series A round co-led by Stellaris Venture Partners and Chiratae Ventures. Axilor Ventures and a few angel investors also participated in the round.
Locofast also raised an additional undisclosed sum in debt from Stride Ventures and BlackSoil Capital. The new round follows a US$2 million seed round in early 2020.
The Indian firm is looking to tap into India’s fragmented textile market, which the company claims to be worth US$100 billion. Its platform aims to make it easier for vendors to connect with suppliers across India.
Deepak Wadhwa, the co-founder of Locofast and former product manager at MakeMytrip, told Tech in Asia that in terms of gross merchandise value, the company had grown at an average of 20% month-on-month since its launch in 2019.
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To date, Locofast has onboarded more than 500 suppliers and managed the supply chain of more than 700 brands, including fashion retailers Zara and H&M. The textile supply chain firm plans to grow the number of suppliers on its platform to 2,500 in the next 12 months.
Wadhwa added that the company recorded a 50x revenue growth in the last 18 months. The firm is looking to accelerate this growth further with the latest fundraise.
Moreover, the company will also expand its presence overseas soon. While it already has customers from Sri Lanka and Bangladesh, Locofast will also set up an office in the US soon.
An international foray will be a key focus area. The company expects an expansion will contribute at least 20% to 25% of the total business in the next 12 months, up from nearly 10% currently, Wadhwa added.
It’s also mulling over an expansion into Europe, especially large markets such as the UK, Germany, and France.
Locofast will use the fresh capital to launch new product categories besides expanding its domestic and overseas presence. The company also plans to increase its headcount to as much as 500 – from 50 currently – over the next 12 months.
“The Indian textile sector is one of the oldest industries in the country contributing about 2% of GDP (gross domestic product) and employing over 45 million people. It is a space that is ripe for digital transformation,” Ranjith Menon, Chiratae Ventures’ partner, and executive director said in a statement.