In a world where every journey is full of adventure and discovery, there is always difficulty in finding the perfect travel bag that is ready for these experiences. Recognizing this challenge, Mokobara is a brand born out of a love for travel and a desire to make it more fun and stylish. On its journey, Mokobara has raised $12 million or Rs 100 crore in a Series B funding round led by Peak XV Partners (formerly Sequoia Capital India) along with participation from existing investors Sauce VC and Saama Capital.
In October 2023, the company raised its first funding round of $3.6 million from investors including Saama Capital, Sauce VC, and Alteria Capital which gave them the push required to expand its product line, enhance its digital presence, and establish a strong foothold in the competitive D2C landscape.
According to regulatory filings with the Registrar of Companies, Mokobara will issue 4,183 Series B compulsory convertible preference shares (CCPS) at an issue price of Rs 2,39,110.51 per share, raising Rs 100 crore. Peak XV Partners led the round by contributing Rs 78.26 crore along with contributions of Rs 15.47 crore and Rs 6.29 crore from Sauce VC and Saama Capital respectively.
“The consumption story in India has always been strong,” a New Delhi-based consumer-focused venture investor told ET. “The tech story gained momentum because venture investors focused on tech came to India with billions of dollars to invest…but India’s consumption metrics continue to be robust,” the person said.
“For investors, the thesis is very clear. In any sector, there is enough space for consumer brands to scale and become large… India also has enough number of large brands across categories and segments that can come in as strategic investors (in startups), opening up an exit route for early-stage investors,” the person added.
“On one hand, you had brands offering low-quality products at low prices. And, on the other hand, you had expensive foreign brands that would cost more than the flight ticket for your trip,” he tells us.
With total funding reaching $23.6 million, Mokobara is well-positioned to scale its operations and capture new market segments. Following the Series B funding round, ownership stakes have been reshuffled, with Peak XV Partners taking an 11.18% share, while Saama Capital and Sauce VC maintain stakes of 14.32% and 19.41%, respectively.
Despite the challenges due to COVID-19, Mokobara has been able to achieve a 4.4X increase in revenue from operations, an increase from Rs 12.18 crore in FY22 to Rs 53.27 crore in FY23. However, the company reported losses of Rs 8.21 crore in FY23, which is a 78.5% increase from the FY22 fiscal year.
Transforming Travel: Makobara
Mokobara is a direct-to-consumer (D2C) brand that specializes in making high-quality, stylish, and functional travel accessories. Founded in 2020 by Sangeet Agrawal and Navin Parwal, former executives at companies like Urban Ladder, Flipkart, and Uber, Mokobara was born out of a desire to fill a gap in the market for travel products that were aesthetic, functional, and affordable.
The founders understood that there were few options in the market for travelers who wanted travel bags that were not only practical but also good to look at. To fill this gap, they decided to build Mokobara, which aims to redefine the travel experience by offering a wide range of travel essentials that are tailored to every person out there.
From durable and chic travel bags to wallets, kits, and sling bags, Mokobara’s product line is carefully created to cater to the personal needs of all travelers. Each product from Makobara undergoes design and testing phases to make sure that they strike the perfect balance between style and functionality.
On a Journey to Redefine Travel Accessories
Mokobara’s story began in 2020 when Sangeet Agrawal and Navin Parwal, two experienced professionals from well-known companies like Urban Ladder and Flipkart, realized something important. They saw that the travel accessory market was missing something: products that were both stylish and affordable.
The idea struck Agrawal during a trip when his luggage broke down when he searched for a replacement but couldn’t find anything that matched his needs for both practicality and good looks. This gap in the market inspired Agrawal and Parwal to create Mokobara, a brand with a mission to make travel more stylish and convenient.
Understanding that travelers want products that are not just useful but also Instagram-worthy, Agrawal and Parwal designed their first accessory- the Cabin Luggage, a perfect blend of modern style and practicality.
“We also wanted to make sure that each design met the highest international standards when it came to quality and functionality. We wanted the journey to be as enjoyable as the destination. That’s why, when you take a close look at any Mokobara – from our first Cabin Luggage design or our most recent one, you’ll find that each Mokobara comes with thoughtful functionality designed to elevate the joy of travel. Whether that’s through the addition of hidden pockets to secure your passport/phone on our backpacks, or the Japanese Hinomoto wheels that have their smooth signature stroll,” Agrawal says.
In 2023, Mokobara achieved big milestones by opening their first store which was followed by eight more, with plans for 100 more in the next two years. Mokobara also became a hit on social media, gathering over 200K followers on Instagram. Their limited edition luggage collaboration with IndiGo got over 20 million views, making them a trendsetter in the industry.
Financially, Mokobara earned the highest revenue per square foot in retail in 2023. Looking forward, Mokobara plans to expand internationally, starting with the UAE in 2024. They also want to introduce new products for kids and fashion-forward travelers, staying true to their goal of blending style, convenience, and affordability.
“We’ve been able to grow our product portfolio to include backpacks & briefcases, totes, and travel accessories. We’ve most recently ventured into the handbag and kids category as well, and are super excited about how they’ve been performing, and the journey that lies ahead,” Agrawal says.
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