Indian women’s activewear brand BlissClub has secured 33 crore rupee (US$3.98 million) in a pre-series B funding round.

The round was led by Elevation Capital, with participation from Eight Roads Ventures, according to regulatory filings.

On April 29, the startup’s board approved the issuance of 16,076 compulsory convertible preference shares (CCPS) at a premium of 20,428 rupee (US$246.74) per share.

Elevation Capital invested 19 crore rupee (US$2.29 million) for 9,256 CCPS, obtaining a 24.5% stake in the company.

The funds will be allocated for working capital requirements, capital expenditure, and general corporate purposes, as stated in the filings.

Founded in 2020 by Minu Margeret, BlissClub started as an online platform selling women’s activewear.

🔗 Source: Inc42

🧠 Food for thought

1️⃣ D2C brands face profitability challenges despite operating in high-growth markets

Blissclub’s financial performance reflects a common pattern among direct-to-consumer startups: strong revenue growth accompanied by widening losses.

Despite increasing sales by 27% to reach INR 86.9 Cr in FY24, the company’s losses expanded by 23% to INR 43.9 Cr during the same period, highlighting the disconnect between growth and profitability.

This challenge persists even though the women’s activewear market is booming globally, with projections showing growth from $17.5 billion in 2022 to $70.89 billion by 2030 at a CAGR of 19.11% 1.

The company’s recent layoffs of 18% of its workforce, attributed to “high cash burn” and funding difficulties, highlight how even startups in expanding markets must eventually prioritize financial sustainability over pure growth.

This pattern of prioritizing growth over profitability has been costly for many D2C brands, with Blissclub exemplifying how market opportunity alone doesn’t guarantee business success without disciplined financial management.

2️⃣ Investors remain committed to category leaders despite setbacks

The fact that Elevation Capital and Eight Roads Ventures are leading this new funding round just three months after Blissclub’s significant layoffs demonstrates continued confidence in the company’s long-term prospects.