Can Dressfolk’s Latest Funding Weave a Sustainable Fashion Revolution?

Can Dressfolk’s latest funding fuel a sustainable fashion revolution? Backed by Eternal Capital and Mamaearth’s Ghazal Alagh, the handloom startup is redefining Indian weaves. Find out how!

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Dressfolk Latest Funding Weave a Sustainable Fashion Revolution

In a world where fast fashion dominates, a quiet yet powerful revolution is unfolding in India’s homegrown fashion industry. Dressfolk, an emerging handloom clothing brand, is taking center stage by blending India’s rich artisanal heritage with contemporary styles. With a recent round of fresh funding led by Eternal Capital and Mamaearth’s Ghazal Alagh, the brand is poised to redefine how modern consumers perceive and wear Indian handlooms.

For decades, handlooms have been seen as a niche segment, often associated with occasion wear or high-end couture. However, Dressfolk’s journey is proving that handwoven fabrics can be an everyday fashion choice—one that is both stylish and sustainable.

Dressfolk Funding

The recent funding round, though undisclosed in amount, has brought in strategic investors who share Dressfolk’s vision. Along with Eternal Capital, the brand secured backing from prominent D2C founders such as Dhruv Koli (Founder, Boba Bhai) and venture firms like Nobody Ventures and Eagle Wings Ventures. 3 Peaks Ventures also joined the round, alongside existing investors All In Capital, Sidhant Keshwani (Libas), and Vidur Kataria (Master Chow)—a clear indication of the growing trust in Dressfolk’s mission.

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Investors are seeing beyond just the financial potential of the brand; they believe in its ability to champion India’s textile heritage. Dhruv Dhanraj Bahl, Managing Partner at Eternal Capital, summed it up best:

“Our conviction in Dressfolk comes not only from their unique business model, which places Bharat and its artisanal heritage at the core, but also from their stellar team, led by Nitin, whose deep and contextual experience gives the company an edge over its peers.”

The Shift Towards Slow, Ethical Fashion

India’s fashion landscape has long been dominated by fast fashion trends, where synthetic fabrics and mass production have overshadowed traditional craftsmanship. Dressfolk saw a clear gap in the market—especially among consumers over 25 years of age, who were looking for timeless, quality Indian wear that did not compromise on comfort.

Founder and CEO Nitin Mehrotra emphasizes that the brand isn’t just selling clothing—it’s reviving a culture of mindful consumption:

“Dressfolk focuses on marrying design and comfort, which deeply resonates with our customers. Wearing authentic handlooms and craftsmanship is a matter of pride for people, and the newly raised funds will enable us to rapidly expand our offerings beyond sarees and build a broader portfolio of contemporary Indian wear.”

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The brand’s commitment to using natural, handwoven fabrics instead of synthetic materials is striking a chord with modern consumers who are increasingly aware of sustainability. This approach not only ensures that each piece is unique but also empowers the local artisan community that has been struggling against mechanized textile production.

Dressfolk’s growth trajectory is nothing short of impressive. In FY24, the brand witnessed a near 200% growth rate, an indication of the surging demand for high-quality, ethically produced Indian fashion.

  • Average Order Value (AOV): Over ₹7,000
  • Network of Weavers: 800+ weavers and 120 artisans across six states
  • Retail Presence: Besides its own website, Dressfolk is available on leading platforms like Aza Fashions, Nykaa, and Myntra, with pop-up stores across India

The brand’s expansion strategy is well-calibrated, ensuring a low order return rate—a sign of high customer satisfaction. It has also built a loyal customer base, including A-list celebrities, further solidifying its reputation as a premium handloom brand.

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Taking Indian Weaves Global

One of Dressfolk’s most ambitious moves is its foray into international markets. With a new international website on the horizon, the brand aims to take Indian handlooms to a global audience. This strategic expansion is in line with the increasing global demand for sustainable, handcrafted fashion, particularly among consumers in markets like the US, UK, and the Middle East.

Dressfolk’s long-term vision is clear: to become the go-to brand for high-quality Indian handlooms and crafts. With a solid foundation, strong investor backing, and a growing consumer base, the brand is well on its way to achieving this goal.

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At a time when the fashion industry is being questioned for its environmental impact, Dressfolk is proving that style and sustainability can go hand in hand. As India reclaims its artisanal legacy, brands like Dressfolk are not just making business headlines—they’re shaping the future of fashion itself.

Disclaimer: This is a company/PR press release, creatively edited without altering facts. TICE is not responsible for business decisions based on this report and does not verify its accuracy.

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