Comet Strengthens Position in India’s Sneaker Market
The sneaker market in India is becoming increasingly competitive, with Comet actively raising new capital to bolster its standing in the industry. The Bengaluru-based footwear label is aiming to secure Rs 98.75 crore ($10.2 million) in a funding round led by new investor Verlinvest, alongside participation from existing investors such as Elevation Capital and Nexus Venture Partners.
In July 2024, Comet successfully raised Rs 42.3 crore (around $5 million) in its Series A round, which was spearheaded by Elevation Capital. The company’s board has given the green light for the allocation of 70,618 Series B compulsorily convertible preference shares (CCPS) and 10 equity shares at an issuance price of Rs 13,983 per share, as stated in its regulatory filing.
Verlinvest, a private equity firm based in Belgium, will take the lead in this round with an investment of Rs 61.73 crore. In addition, both Elevation Capital and Nexus Ventures plan to invest Rs 17.90 crore each. Co-founder of UC, Abhiraj Singh Bhal, along with Bhaane Retail, will contribute Rs 50 lakh each, while Ajit Mohan is set to invest Rs 20 lakh.
According to Startup Superb’s assessments, the valuation of this Bengaluru-based enterprise is projected to soar 3.2X to around Rs 535 crore ($56 million) from the estimated Rs 167 crore valuation after the Series A round in 2024. The newly raised capital is intended for various purposes, including working capital needs, capital expenditure, and general corporate activities.
Founded in 2023 by Utkarsh Gupta and Dishant Daryani, Comet is positioned as a lifestyle sneaker brand in Bengaluru. It caters to both men and women, with a focus on India-inspired, trendsetting designs, and operates primarily through its own sales platform.
Following the completion of this allotment, Elevation Capital and Nexus Ventures will each hold a 19.72% stake in Comet, while Verlinvest will own 9.48%. Abhiraj Singh Bhal and Bhaane Retail Private Limited will each have a 0.08% share, and Ajit Mohan will hold 0.03%.
A report from March via Moneycontrol previously indicated that Comet was exploring options to raise Rs 140-150 crore ($15-16 million) in fresh funding. The startup has not yet submitted its FY26 financials. However, in FY25, Comet’s revenue surged nearly 4X to Rs 29 crore, although its losses increased to Rs 4.39 crore.
Comet is part of a rising group of homegrown sneaker brands, including Gully Labs, Neeman’s, ARCs, and Doc Sneakers. Gully Labs secured Rs 30 crore in January, while Neemans has emerged as one of the well-capitalised players, having raised approximately $18 million. Although India’s extensive footwear market is still largely governed by established brands, there is potential for a shift akin to that observed in the luggage sector, where direct-to-consumer (D2C) brands have effectively carved out a niche through consumer-centric strategies. Sneakers may very well follow a similar path.