Indian startup using vegan leather raises $4.5 million led by SIG Venture Capital

• Bengaluru-based startup uses high-quality vegan leather to ensure its footwear ages well.
  
• India is the second largest consumer and producer market for footwear in the world.
  
• The latest funding round was led by SIG venture capital, Tanglin Venture PartnersIndia Quotient, and Ananya Goenka.

RapidBoxa direct-to-consumer startup operating in the footwear, sports and fashion categories announced Thursday that it has raised $4.5 million in a Series A funding round.

The latest funding round was led by SIG Venture Capital, the Asian venture capital arm of the Susquehanna International Group of Companies (“SIG”), Tanglin Venture Partners, India Quotient and investment banking analyst Ananya Goenka.

RapidBox has its own production line and uses premium quality vegan leather (fake leather that does not use animal skin) to ensure the footwear ages well.

“As a young brand, we see a lot of room for growth as we meet the growing footwear and fashion needs of consumers who are ambitious and early achievers. RapidBox was launched to close the market gap in the footwear industry with an emphasis on improving product quality and consumer experience.” Arun Paliwalsaid co-founder of RapidBox.

The Bengaluru-based startup that sells its products on leading e-commerce platforms such as flip kart and Myntra was founded in 2019 by Arun Paliwal and Manoj Baranwal. The full-stack technology-driven company said it will use the funds to expand its product range, improve customer experience and brand building.

India is the second largest consumer and producer market for footwear in the world, accounting for 11% of global footwear production, as reported by equity research firm B&K Securities. Indian shoe consumption has grown at a CAGR of 4.5% from 2.05 billion pairs in FY15 to 2.56 billion pairs in FY20.

“The Indian footwear market is currently underpenetrated with a per capita consumption of just 1.9 pairs against a global average of 3 pairs and an average of 5-6 pairs in developed countries,” said a report by equity research firm B&K Securities.

“With the advent of social media, consumers of all segments are exposed to the latest footwear trends and have the same ambition for these products. RapidBox fulfills these ambitions through rapid innovation to deliver beautiful shoes at prices suitable for the economic segment,” said Bhavani Rana, investment advisor at SIG Venture Capital.

India’s footwear industry is witnessing a surge in demand due to increased urbanization, rise in disposable income and increasing penetration in smaller cities, especially post-pandemic, estimates B&K Securities.

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