Aditya Birla Group venture, said it is investing Rs.290 crore to buy eight digital first lifestyle brands, in an attempt to build a billion dollar D2C portfolio in the next few years. These include women's western wear Berrylush, casual wear Bewakoof, Juneberry, a casual wear brand, teen's occasion wear Natilene, kid's wear Nauti Nati, athleisure brand Nobero, casual and denim wear Urbano and Veirdo. The brands have a combined revenue run-rate of Rs.700 crore and the company said it will more than double to cross an annual revenue rate of Rs.1,500 crore in the next 12 months.

"What the founders bring is typical to any startup. What got the brand here is definitely needed to take the brand to the next level, which is the consumer insight, the passion, maybe some category nuance, which they have identified through a white space", Prashanth Aluru, Co-Founder & CEO of TMRW. "But equally what got them here, we know will not get them to the next level. And hence, their deep partnership with the TMRW team will continue and be founder-led and their teams playing an active role", he said, adding that the plan in the first year is to build a portfolio of 10 to12 brands with an investment of Rs.500-600 crore.

Some of these transactions are subject to customary closing conditions and signing of definitive documents, TMRW said. As the world's second most populated country, India is an attractive market for apparel brands especially with youngsters increasingly embracing western style clothing. Within the apparel space, several brands including H& M and Puma get over 40-50percent of their revenues from online, indicating increased affinity towards e-Commerce channels post the pandemic.

Within the apparel space, several brands including h& m and puma get over 40-50 percent of their revenues from online, indicating increased affinity towards e-commerce channels post the pandemic

As per a report, Aditya Birla Fashion & Retail(ABFRL) is in the final stages of acquiring a controlling stake in apparel and accessories brand Bewakoof. The company said the fashion and lifestyle ecommerce market will be a $35-40 billion market by 2027 and within D2C alone, there is an addressable market of at least $15-20 billion. "Hence our ambition is to build a billion dollar plus household brands player over the next five to seven years. We don't see ourselves as an aggregator but as a brand builder", added Aluru.

In June, ABFRL set up its D2C entity TMRW and said it will acquire as well as incubate 30 brands in the next three years. As a strategy, ABFRL, which sells clothes and accessories from Louis Philippe, Van Heusen, Allen Solly and Peter England, among others, plans to enable multiple founders to operate within a synergistic platform that will have shared capabilities.