Snitch's $33M Raise, Razorpay's Homecoming, Dunzo's Breather

It’s hard to forget that first time we saw Snitch on Shark Tank India. Another men's fashion brand, we thought. What’s new here? Most brands in this space feel the same - celebrity-driven, loud logos, inconsistent quality. Think WROGN, Roadster, Mast & Harbour, etc. So, we weren’t impressed. But then, something changed.

We started noticing Snitch-branded packages being delivered around our society. The brand kept popping up on Instagram. And then came the real surprise - we saw a well-designed, swanky Snitch store in Delhi’s Lajpat Nagar. That’s when we gave it a shot. A pair of cargos and a t-shirt later, Snitch found a spot in our wardrobe. Decent fit, fairly priced, and it held up fine after a few washes. It wasn’t life-changing, but it worked.

Now, Snitch is raising $33 million in a new funding round led by 360 One Asset Management at $294 million valuation - that’s 5X jump in just five months. For a brand that started as a small business with a ₹4.5 crore loan in 2019, that’s significant. But is it all going according to plan, or are there parts we should be cautious about?

We think this round reflects two things: timing and positioning. Men’s fashion, especially for urban Gen Z and millennials, is still underserved in India. Most options are either too expensive or too bland. Snitch seems to have found a gap - by launching new styles quickly, keeping prices around the mid-point, and staying active on platforms where their audience spends time. Snitch claims to launch new designs daily, inspired by global trends and adapting them for Indian consumers—dare we say a Zara for India?

What they’ve built on the operations side also seems fairly disciplined. Processing 2,000 orders a day, managing over a million orders annually, running daily drops, and maintaining the app's contribution at 35% of sales, looks impressive. And unlike other brands chasing growth at all costs, they’ve stayed profitable. A net profit of ₹4.4 crore on ₹243 crore revenue isn’t huge, but it shows some level of financial discipline.

However, let's not get carried away. Fashion, especially D2C, is not an easy business to scale. Customer acquisition costs are always a concern, and Instagram ads don’t come cheap. If Snitch can’t control those costs while scaling, margins can erode very quickly. The valuation jump comes with higher expectations. They now have to show strong revenue growth, better profits, and possibly open more stores - all without slipping.

Design isn’t a moat in fashion industry. Trends change fast and influencers move on. Supply chains can be easily copied. Unless Snitch finds a way to build deeper customer loyalty and maybe diversify channels without burning too much cash, this can become challenging.

For now, it looks like Snitch is one of the better-run fashion startups in the D2C space. We would wait and watch. The brand has momentum, but the next two years will show whether it can become a sustainable business or just another name that peaked too fast. In a market where most D2C brands struggle after Series B, Snitch has crossed a few hurdles. Now it needs to show it can survive the tougher ones.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Mujhe Ghar Jaana Hai”: With IPO On The Cards, Razorpay Moves Domicile To India

Razorpay is packing its bags from Delaware and heading home—officially merging its U.S. entity with its Indian arm ahead of its much-anticipated IPO.

The fintech giant hasn’t spilled the beans on its U.S. exit tax bill, but insiders say it’s been quietly rejigging its structure to lighten the load. With a new name—Razorpay Software Limited—it’s all systems go for a Made-in-India listing.

Read more here

“Ee Sala Cup Naamde”: Karnataka To Put Out Draft Rules In 2 Weeks For Gig Workers’ Welfare Prog

Karnataka is preparing to release draft rules in two weeks that could mark a turning point for gig workers' welfare.

The state plans to levy a fee on digital platforms to support social security measures - a move long overdue. With the Governor’s approval of the ordinance, the focus now shifts to how meaningfully these rules will address the precarity of platform-based work.

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“Rahat Ki Saans”: NCLT Dismisses Insolvency Plea Against Dunzo

Dunzo just dodged a bullet - the NCLT has dismissed an insolvency plea filed by its invoice discounters, calling it “not maintainable.”

It’s a brief sigh of relief for the embattled delivery startup, which still faces heat from heavyweights like Google, Facebook India, and Koo over unpaid dues. One case down, but Dunzo’s courtroom calendar is far from clear.

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“Hum Saath Saath Hai”: Upskilling firm Imarticus Learning acquires learning platform MyCaptain for Rs 50 Cr

Imarticus Learning is on an acquisition spree - this time snapping up MyCaptain for ₹50 crore to deepen its play in passion-driven education.

With this move, Imarticus not only grows to 850+ employees but also welcomes MyCaptain’s ex-founders into its leadership ranks. For a platform built on mentorship and creativity, the merger feels like a fitting next chapter.

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1. D2C fashion brand Snitch is set to bag ₹280 Cr in fresh funding, led by 360 Asset Management Fund. The Bengaluru startup plans to ramp up products, expand offline, and strut onto the global stage.
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2. Quick fashion startup KNOT is in advanced talks to raise $3 Mn in its first funding round, led by Kae Capital. A pivot from anonymous compliments to 60-minute style drops, KNOT’s speed-first model is turning heads.
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3. Lendingkart is set to raise ₹100 Cr in debt from InnoVen Capital as it navigates a rough patch marked by a ₹253 Cr loss in 9M FY25. With a new CEO at the helm, the fintech lender is clearly gearing up for a course correction.
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4. IFC has pledged $30 Mn to L Catterton’s $600 Mn India Fund, with an option to co-invest another $30 Mn. The fund, led by L Catterton Asia and ex-HUL chief Sanjiv Mehta, aims to back 7–9 growth-stage Indian firms.
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5. Nashik-based home hygiene startup Cleevo has raised $1M in a seed round led by Eternal Capital. The funds will fuel R&D and help expand its reach across digital, B2B, and international markets.
   Read more here