Homegrown Sneaker Brand Comet Secures $5 Million in Series A Funding

Comet, a Bengaluru-based direct-to-consumer (D2C) sneaker brand, has successfully secured Rs 42.3 crore (approximately $5 million) in its first funding round of 2024. The Series A round was led by prominent venture capital firm Elevation Capital.

Funding Details and Investor Participation

To raise the targeted amount, Comet’s board approved the issuance of a special resolution. This resolution authorized the company to issue 10 equity shares and 50,076 Series A Compulsorily Convertible Preference Shares (CCPS) at an issue price of Rs 8,445 each. Regulatory filings accessed from the Registrar of Companies confirm these details.

Elevation Capital emerged as the leading investor, contributing Rs 33.36 crore to the round. Existing investors, Nexus Ventures and AngelList India, also participated in the funding, committing Rs 8.34 crore and Rs 60 lakhs respectively.

Funding Allocation and Future Plans

As outlined in the company’s business plan, the proceeds from this funding round will be strategically allocated towards capital expenditures, marketing initiatives, and general corporate purposes.

Valuation and Investment Landscape

According to data platform TheKredibe, Comet’s post-allotment valuation is estimated to be around Rs 167 crore ($20 million). The company had previously secured seed funding in February 2023. Following this Series A round, Elevation Capital and Nexus Ventures will each hold a 20% stake in Comet, while AngelList India will hold a 2.22% stake.

Brand Identity and Product Range

Founded in July 2023, Comet has established itself as a homegrown brand catering to the lifestyle sneaker market. The company offers footwear for both men and women, with its product range currently encompassing models like CometX, Aeon, and Slides. All products are available for purchase through Comet’s official website.

Market Potential and Competitive Landscape

Comet identifies its Total Addressable Market (TAM) as a significant $22 billion opportunity. Furthermore, the company projects its Serviceable Addressable Market (SAM) to reach $1.5 billion by the 2030 fiscal year. In the Indian market, Comet faces competition from domestic brands like Wrong, HRX, Redtape, The Roadster, Campus, and Sparx. Additionally, international footwear giants like Nike and Adidas are also prominent players in the market.