Dressfolk raises new funding led by Eternal Capital, Ghazal Alagh

The funds will support the expansion of its offerings beyond sarees to include a broader range of contemporary Indian wear, tapping into the growing demand for authentic handlooms and craftsmanship.

Handloom clothing brand Dressfolk has secured funding from Eternal Capital, D2C founders Ghazal Alagh (Founder, Mamaearth) and Dhruv Koli (Founder, Boba Bhai), as well as Nobody Ventures and Eagle Wings Ventures. Additionally, 3 Peaks Ventures participated in the round alongside existing investors All In Capital, Sidhant Keshwani (of Libas), and Vidur Kataria (of Master Chow).

Dressfolk is focused on combining design and comfort, resonating strongly with its customer base. The funds will support the expansion of its offerings beyond sarees to include a broader range of contemporary Indian wear, tapping into the growing demand for authentic handlooms and craftsmanship.

While many new-age fashion brands are focused on fast fashion trends, Dressfolk identified a gap in the market for handwoven Indian wear targeting consumers over 25 years old. The brand has expanded its reach beyond its website, partnering with major marketplaces such as Aza Fashions, Nykaa, and Myntra, and hosting pop-ups across India.

Dressfolk’s business model emphasises India’s artisanal heritage, which is central to its appeal. The brand has seen significant growth, expanding its network to over 800 weavers and 120 artisans across six states. With a 200 per cent growth in FY24, Dressfolk plans to take Indian handloom global through an international website.

The rise of branded ethnic wear in India, especially in women’s wear, has seen a shift from traditional sarees to both ethnic and western wear, even as global brands like Zara, H&M, and Uniqlo dominate the market. Ethnic wear remains the largest category in the women’s wear segment, with a 71 per cent share.