Comet Raises $5 Million in Series A Funding, Led by Elevation Capital

In a significant development for the Indian direct-to-consumer (D2C) sneaker market, Bengaluru-based startup Comet has successfully raised INR 42 Cr (approximately $5 million) in Series A funding. This milestone comes after Inc42 exclusively reported on Comet’s advanced discussions with Elevation Capital and Nexus Venture Partners nearly a month ago.

The fresh capital infusion sees Elevation Capital leading the round with an investment of around INR 33 Cr, while existing investor Nexus Venture Partners also participated. According to regulatory filings, the terms of the deal have been finalized, and the funding round is expected to close soon.

Although Comet declined to comment on the specifics of the funding round and its deployment, sources indicate that the new funds will be instrumental in expanding the startup’s team and product portfolio. Additionally, Comet plans to grow its inventory and establish offline retail stores by early next year.

Founded in 2022 by former Hotstar executive Utkarsh Gupta and ex-Urban Company executive Dishant Daryani, Comet officially launched in 2023. The startup offers a range of sneakers priced between INR 4,000 and INR 4,500, along with slides and shoelaces, primarily through its own website. Earlier this year, Comet released limited edition sneakers in collaboration with multidisciplinary artist Shantanu Hazarika.

Comet operates in a burgeoning market with numerous homegrown competitors, such as 7-10, Neemans, and Rare Rabbit. However, with its current pricing strategy, Comet is positioned to compete directly with global brands like Puma. Elevation Capital’s portfolio includes other successful D2C brands like The Souled Store, Sugar Cosmetics, and Bliss Club, highlighting their confidence in Comet’s potential.

The D2C market in India has witnessed a remarkable surge, with hundreds of brands emerging across various sectors. Investors have shown substantial interest in this rapidly expanding market. According to an Inc42 report, the D2C sector is one of the fastest-growing subsectors in ecommerce, projected to grow at a CAGR of 19% and reach over $400 billion by 2030.

Comet’s recent funding round marks a significant step forward for the startup, enabling it to scale operations and broaden its market presence. With strong backing from Elevation Capital and Nexus Venture Partners, Comet is well-positioned to capitalize on the growing D2C market in India and achieve sustained growth in the competitive sneaker industry.