Gurgaon-based D2C footwear startup Solethreads has successfully raised $3.7 million (approximately Rs 31 crore) in its Series A funding round. The funding was led by Fireside Ventures, with participation from existing investors DSG Consumer Partners and Saama Capital. With this new capital infusion, the company aims to enhance its technological infrastructure and expand its network of dark stores.

Established in 2020 by Gaurav Piyush, Yash Sharma, and Mayank Varshney, Solethreads offers a wide range of flip-flops, slides, and sneakers for both men and women through both online and offline channels. “It is very important for us to lead the curve when it comes to designs and innovations, and for us to be able to do that, the entire back-end needs to sit in-house, especially the design team. We are building that, and that’s where a large part of the funds will be deployed,” said Mayank Varshney, Co-founder and CEO of Solethreads.

Currently, the D2C company has an omnichannel presence in about 600 multibrand outlets through distributors and in large retail formats such as Shoppers Stop, Reliance Retail, and Metro Shoes. The company is also planning to expand its offline presence by opening its own stores. It currently has one store in Mumbai and aims to have 10 stores across the country by the end of the ongoing fiscal.

Vinay Singh, Co-founder and Partner of Fireside Ventures, highlighted the growth prospects of the non-leather footwear industry in India. He said, “Footwear is a fairly large unorganized market, and as GDP per capita goes up, footwear is one of the categories that will get quickly organized. The framework in which a new footwear company needs to be created is new product development, design, and innovation along with good market and distribution, with which one can create a good brand that appeals to GenZ and early millennials.”

Solethreads projects significant growth in the non-leather footwear industry, with expectations to achieve a revenue of Rs 50-60 crore in FY24 and target an annual run rate of Rs 100 crore in the next year. The company is determined to establish itself as a brand that appeals to GenZ and early millennials, tapping into the vast market potential.

The D2C footwear space has been attracting increased interest from venture investors, as evident from the recent activities of various startups in the industry. Solethreads is confident in its vision to become a major player in the category, aiming to capture a sizable wallet share and address the market’s potential effectively. The non-leather footwear industry in India is projected to grow eight-fold by 2030 and is expected to cross the $6 billion mark by 2024, Solethreads said in a statement.