Total amount raised
$17 Millions
Latest funding date
02/01/2022
Location
Locofast has successfully raised $15 million in its most recent Series A funding round, co-led by Stellaris Venture Partners and Chiratae Ventures. The company, a B2B online marketplace for textile procurement, has attracted significant investment from notable backers including Axilor Ventures and Amit Lakhotia.
Keep reading to explore the intricacies of Locofast's fundraising journey and the investors backing this innovative platform.
What Is Locofast?
Locofast, founded in 2019, is a rapidly growing B2B textile marketplace based in New Delhi, India. The company was established by Deepak Wadhwa and Mohit Piplani.
Operating in the fashion, marketplace, supply chain management, and textiles industries, Locofast leverages technology to provide smart, efficient, and sustainable fabric sourcing solutions. The company employs between 101-250 people and offers a variety of products and services, including fabric sourcing, greige fabric, finished fabric, logistics, a credit program, and a customer app.
How Much Funding Has Locofast Raised?
- Seed Round
- Amount Raised: $2M
- Date: January 2020
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To establish the company and develop the initial platform for textile procurement.
- Series A
- Amount Raised: $15M
- Date: February 2022
- Lead Investors: Stellaris Venture Partners, Chiratae Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To invest in technology, expand to more than 15 cities in India, launch new product categories, and enable SMEs to scale their businesses.
- Debt Financing
- Amount Raised: Not publicly disclosed
- Date: February 2022
- Lead Investors: BlackSoil, Stride Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support operational expansion and enhance financial stability.
Total Amount Raised: $17M
Current Valuation: Not publicly disclosed
Key Investors
- Stellaris Venture Partners
- Details: Stellaris Venture Partners is a venture capital firm that invests in early-stage technology companies. They co-led Locofast's $15 million Series A funding round.
- Investment Focus Areas: Technology-driven businesses, early-stage startups.
- Notable Investments: Not specified.
- Chiratae Ventures
- Details: Chiratae Ventures, formerly known as IDG Ventures India, is a leading technology venture capital firm. They co-led Locofast's $15 million Series A funding round.
- Investment Focus Areas: Technology, healthcare, consumer media, financial services.
- Notable Investments: Not specified.
- Axilor Ventures
- Details: Axilor Ventures is a venture capital firm that supports early-stage startups. They participated in Locofast's Series A funding round through Kris Gopalakrishnan’s fund.
- Investment Focus Areas: Early-stage startups, technology, healthcare, consumer sectors.
- Notable Investments: Not specified.
- BlackSoil
- Details: BlackSoil is a venture debt firm that provides structured debt solutions. They provided debt financing to Locofast.
- Investment Focus Areas: Structured debt solutions for growth-stage companies.
- Notable Investments: Not specified.
- Stride Ventures
- Details: Stride Ventures is a venture debt fund that provides credit solutions to growth-stage companies. They provided debt financing to Locofast.
- Investment Focus Areas: Debt financing for startups.
- Notable Investments: Not specified.
What's Next for Locofast?
Locofast is poised to capitalize on significant opportunities in the textile industry. With plans to invest in technology, expand to over 15 cities in India, and launch new product categories, the company aims to enhance its market presence. The Indian textile sector, contributing 2% to the GDP and employing over 45 million people, offers a vast market ripe for digital transformation.
Future fundraising opportunities appear promising as Locofast continues to grow. The company may seek additional funding to support technological advancements and market expansion. However, challenges such as ensuring consistent quality, managing rapid expansion, and competing with other tech-enabled platforms could pose hurdles along the way.
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