[Update] Exclusive: Comet To Raise Funding From Elevation Capital, Nexus

SUMMARY

While Elevation Capital will join Comet’s cap table by investing in the fresh round, existing investor Nexus Venture Partners will also participate in it

Sources told Inc42 that the D2C startup would use the fresh funds to expand its team and product portfolio, grow its inventory, and begin opening offline retail stores by early next year

Founded by former Hotstar executive Utkarsh Gupta and ex-Urban Company executive Dishant Daryani, Comet sells sneakers for both males and females in INR 4,000-INR 4,500 range

Update | Jul 2, 3:30PM

Almost a month after Inc42 exclusively reported that D2C sneaker brand Comet was in advanced talks with Elevation Capital and Nexus Venture Partners for a fundraise, the startup confirmed the development in its regulatory filing.

Comet has raised INR 42 Cr (about $5 Mn) from the investors, with Elevation Capital infusing about INR 33 Cr.

Original Story | May 11, 3:43 PM

Bengaluru-based D2C sneaker brand Comet is in advanced stages of discussions with Elevation Capital and Nexus Venture Partners to raise Series A funding, sources told Inc42.

“The round will be led by new investor Elevation Capital, while existing investor Nexus Venture Partners will also participate in this round,” one of the sources said.

The terms of the deal have been finalised and the funding round will be closed soon, the sources added. However, Inc42 couldn’t ascertain the amount of capital the startup will be raising in this round.

Comet declined to comment on Inc42’s queries about the funding round and the deployment of the fresh capital.

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The sources said that the D2C startup would use the fresh funds to expand its team and product portfolio, grow its inventory, among others. Currently, Comet has a workforce of 10-20 employees.

The startup also plans to begin opening offline retail stores by early next year.

Founded by former Hotstar executive Utkarsh Gupta and ex-Urban Company executive Dishant Daryani in 2022, Comet was officially launched in 2023.

The startup currently sells sneakers for both males and females in the price range of INR 4,000 to INR 4,500. It also sells slides and shoe laces. Currently, the startup primarily sells its product through its own website.

Earlier, Comet raised seed funding from Nexus Venture Partners.

Earlier this year, the startup collaborated with multidisciplinary artist Shantanu Hazarika to drop limited edition sneakers.

Besides Comet, the Indian homegrown sneaker market has multiple startups like 7-10, Neemans, and Rare Rabbit. However, given its price range, Comet competes with the likes of Puma.

Meanwhile, Elevation Capital also counts popular D2C brands such as The Souled Store, Sugar Cosmetics, and Bliss Club among its portfolio.

It is pertinent to note that the last few years have seen the emergence of hundreds of D2C brands across sectors in the country. Not only this, these brands are also receiving strong interest from investors.

At the heart of all these is the rapidly expanding D2C market. According to an Inc42 report, D2C is one of the fastest growing subsector in the ecommerce sector. The country’s D2C market is poised to grow at a CAGR of 19% to reach a size of over $400 Bn by 2030.