With the help of growth stage venture capital firm Lighthouse's fourth alternative investment fund (AIF), luggage brand Safari Industries (India) has raised INR 229 crore (roughly $27 million) in new funding.
This is Lighthouse's second investment in the company, according to the official statement.
Lighthouse made a 284 crore investment in Kushal's last week, allowing its first institutional investor, India SME Investments, to partially exit the company.
Lighthouse's portfolio companies include Dhanuka Agritech, Kama Ayurveda, Bikaji Foods, Nykaa, Duroflex Mattresses, Fabindia, Ferns N Petals, Cera Sanitaryware, and Kushal's Retail.
Safari produces and sells a wide variety of backpacks and baggage bags. More than 800 stock keeping units (SKUs) and more than 9,300 online and offline client touch points are claimed by the company.
Media sources state that the corporation granted Investcorp, one of its investors, an exit last year with an internal rate of return (IRR) of 102%. The investor received a total return of INR 285 Cr, which is an astounding 3.8x multiple of their INR 75 Cr investment.
Safari faces competition from companies such as VIP, American Tourister, and startups like Mokobara and Nasher Miles.
The statement was made a few days after its rival Mokaba raised $12 million in fundraising, headed by Peak XV Partners, raising the startup's valuation to $80 million. It already operates a number of locations in Bengaluru, Delhi, Mumbai, and Pune, and by April of this year, it hopes to add 25 more.
As per market research, the baggage business in India is projected to reach $15.05 billion by 2024 and is anticipated to develop at a compound annual growth rate of 5.21% by 2028.
