Comet Raises Rs 98.75 Crore to Accelerate Growth in India’s Rising Sneaker Market
Competition in India’s new-age sneaker category is intensifying, and Bengaluru-based footwear brand Comet is raising fresh capital to strengthen its position. The lifestyle sneaker company is set to raise Rs 98.75 crore (approximately $10.2 million) in a funding round led by new investor Verlinvest, with participation from existing backers Elevation Capital, Nexus Venture Partners and others.
The raise comes less than two years after Comet’s Series A and reflects growing investor interest in homegrown D2C footwear brands that combine design-led products with direct consumer relationships.
Details of the Series B Round
According to regulatory filings, Comet’s board has approved the issuance of 70,618 Series B compulsorily convertible preference shares (CCPS) along with 10 equity shares at an issue price of Rs 13,983 per share. These instruments will enable the company to raise the targeted Rs 98.75 crore.
Verlinvest, the Belgium-based private equity firm, is leading the round with an investment of Rs 61.73 crore. Existing investors Elevation Capital and Nexus Venture Partners are each putting in Rs 17.90 crore. Additional participation comes from Urban Company co-founder Abhiraj Singh Bhal and Bhaane Retail, who are investing Rs 50 lakh each, while Ajit Mohan is contributing Rs 20 lakh.
The structure of the round—primarily CCPS with a small equity component—follows a common pattern in growth-stage Indian startups, balancing investor protections with continued capital for scaling.
Sharp Jump in Valuation
One of the standout elements of the transaction is the sharp rise in Comet’s valuation. As per estimates, the company’s valuation is expected to increase 3.2 times to around Rs 535 crore (approximately $56 million). This compares with a post-money valuation of roughly Rs 167 crore after its Series A round in 2024.
The step-up indicates strong confidence from both new and existing investors in Comet’s brand trajectory, product-market fit, and ability to capture a meaningful share of India’s evolving footwear market.
Looking Back at the Previous Raise
In July 2024, Comet raised Rs 42.3 crore (about $5 million) in its Series A round led by Elevation Capital. That capital helped the brand build its initial product range, strengthen operations, and expand its direct-to-consumer presence.
The current Series B arrives after a period of measurable growth. In FY25, Comet’s revenue jumped nearly four times to Rs 29 crore, even as losses widened to Rs 4.39 crore. The company has not yet filed its FY26 financials. The combination of rapid top-line expansion and continued investment in brand and operations is typical of early-stage consumer brands prioritising scale over near-term profitability.
An earlier March report had indicated that Comet was exploring a larger raise of Rs 140-150 crore. The eventual Rs 98.75 crore round still represents a significant infusion and brings in a prominent international investor in Verlinvest.
Company Background and Brand Positioning
Founded in 2023 by Utkarsh Gupta and Dishant Daryani, Comet is a Bengaluru-based lifestyle sneaker brand offering sneakers and slides for both men and women. The company focuses on India-inspired, fashion-forward designs and primarily sells through its own platform.
This D2C-first approach allows Comet to control the customer experience, gather direct feedback, and maintain tighter margins compared with traditional multi-brand retail models. The emphasis on culturally relevant design aims to differentiate the brand in a category long dominated by global names and mass-market players.
Post-Allotment Shareholding
Following the allotment, Elevation Capital and Nexus Venture Partners will each hold 19.72% stakes in Comet. New investor Verlinvest will own 9.48%. Abhiraj Singh Bhal and Bhaane Retail Private Limited will each hold 0.08%, while Ajit Mohan will have a 0.03% stake.
The ownership structure keeps significant institutional backing while introducing Verlinvest’s international consumer expertise into the shareholder base.
How the Capital Will Be Used
Comet plans to deploy the fresh funds towards working capital requirements, capital expenditure, and general corporate purposes. For a growing D2C footwear brand, this typically supports inventory buildup, manufacturing scale-up, marketing and brand-building efforts, technology investments, and operational infrastructure needed to sustain higher growth rates.
Competitive Landscape and Market Opportunity
Comet is part of a growing set of homegrown sneaker brands that includes Gully Labs, Neeman’s, ARCs, and Doc Sneakers. Gully Labs raised Rs 30 crore earlier in the year, while Neeman’s remains one of the better-funded players in the space with around $18 million raised to date.
India’s overall footwear market remains large and is still largely controlled by established players. However, observers note that the category could follow a path similar to luggage, where focused D2C brands successfully carved out space by offering consumer-first propositions, better design, and direct relationships. Sneakers, with their strong fashion and lifestyle associations, appear well-positioned for a comparable shift.
Rising disposable incomes, growing interest in athleisure and streetwear, and increasing comfort with online footwear purchases are creating favourable conditions for newer brands that can combine style, quality, and cultural relevance.
Looking Ahead
With nearly Rs 99 crore in fresh capital and a valuation that has more than tripled, Comet enters its next phase with stronger resources and broader investor support. The challenge now shifts to execution: scaling production efficiently, maintaining design differentiation, building brand loyalty, and improving unit economics as volumes grow.
The entry of Verlinvest alongside continued support from Elevation Capital and Nexus Venture Partners provides both capital and strategic depth. For the wider Indian sneaker market, Comet’s raise adds to the momentum of domestic brands seeking to challenge the status quo.
As competition intensifies, brands that can consistently deliver distinctive products, reliable quality, and a compelling direct-to-consumer experience are likely to emerge stronger. Comet’s latest funding round positions it to test that hypothesis at greater scale.