Shark Tank Fame Bummer Scores Fresh Funding to Expand Product Range

Bummer Secures Fresh Funding
Preeti Bali / 9:00 am / March 11, 2024

Bummer, a popular direct-to-consumer (D2C) innerwear brand known for its appearance on Shark Tank India, has secured Rs 9.25 crore in fresh funding. This investment round was spearheaded by Gruhas Collective Consumer Fund, with additional participation from existing investor Fluid Ventures Fund.

Capital Infusion for Strategic Expansion

The company’s board of directors approved the issuance of 2,16,121 pre-series A1 CCPS at an issue price of Rs 428 each, raising a total of Rs 9.25 crore. Regulatory filings obtained from the RoC reveal the details of this financing round. According to these filings, Gruhas Collective Consumer Fund, a venture capital firm co-founded by Nikhil Kamath and Abhijeet Pai, contributed Rs 8 crore, while Fluid Ventures Fund provided Rs 1.25 crore.

The newly acquired capital will empower Bummer to focus on expanding and developing its product categories. This strategic move signifies the company’s commitment to continuous innovation and catering to a wider range of customer needs.

Sustainable Comfort: A Core Value

Founded in 2019, Bummer has carved a niche in the market by offering comfortable and stylish innerwear for both men and women. The company prioritizes sustainability in its manufacturing processes, claiming to utilize 47% less water and produce an 18% lower carbon footprint compared to traditional methods.

Shifting Shareholder Landscape

Following this funding round, Gruhas Collective Consumer Fund emerges as the largest external stakeholder, holding a 17.3% stake in the company. Other key investors include Beenext Asia, Fluid Ventures, and Thapar Vision LLP. Bummer’s founder and CEO, Sulay Lavsi, along with his family, collectively hold a 45.97% stake.

Estimated Valuation

Based on estimates from TheKredible, Bummer’s post-allotment valuation is approximately Rs 46.5 crore, translating to roughly $5.6 million.

Building on Early Success

Prior to this investment round, Bummer had secured funding from Singapore-based venture capital firm Beenext Asia for an undisclosed amount of $180,000. Additionally, the company received Rs 75 lakh (approximately $92,000) in funding on the popular Indian television show Shark Tank India. The investment on Shark Tank India was led by Aman Gupta, co-founder and CMO of boAt, and Namita Thapar, CEO of Emcure Pharmaceuticals.

Bummer’s financial performance for the fiscal year ending March 2023 reflects a period of significant growth. The company’s revenue from operations tripled to Rs 7.83 crore during this period. However, losses also increased, rising 2.8 times to Rs 2.94 crore. Despite this increase in losses, the fresh investment demonstrates confidence in Bummer’s long-term potential for profitability and market leadership in the D2C innerwear space.

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