Fashion Startup Outzidr Raises Rs 30 Crore to Target Gen Z Market

Online fashion retailer Outzidr has secured Rs 30 crore in funding led by Stellaris Venture Partners to expand its affordable, trendy clothing offerings for Gen Z consumers. The funding round attracted angel investors, including Ramakant Sharma of LivSpace and Ghazal Alagh of Honasa Consumer.

Founded in 2024 by industry veterans Nirmal Jain, Mani Kant Mani, and Justin Mario, Outzidr launched its direct-to-consumer platform earlier this year. The company has set an ambitious target of reaching Rs 100 crore in annualized revenue within 6-8 months.

Outzidr differentiates itself through its "test-and-react model," which allows it to identify trends and bring products to market quickly. The company works with low minimum order quantities and scales successful styles after confirming consumer interest.

"Every day, countless trends emerge. If you try to launch products for all of them using a traditional fashion manufacturing model, the inventory burden becomes unmanageable," said Nirmal Jain, who is the Co-founder of Outzidr.

The fresh capital will primarily fund the development of Outzidr's test-and-react capabilities, including investments in talent, technology, and manufacturing partnerships. The company will also allocate funds toward brand building and inventory management.

Currently sourcing fabrics both domestically and internationally, Outzidr plans to shift 90% of its manufacturing to India within two years. The company maintains less than three weeks of inventory at any given time.

"Making the test-and-react model work at scale requires strong foundational capabilities across demand sensing, product development and sourcing, and automated merchandising," Jain explained. "It helps us offer trendier styles, probably first to market, with greater variety while staying commercially viable."

The founding team brings substantial industry experience. Jain previously served as founding CEO of Styli, a Middle Eastern fast-fashion brand he scaled to Rs 800 crore in under five years. Mani was SVP for Digital & Omni business at Max Fashion, while Mario was COO at Aymakan and Styli, leading supply chain and strategy.

Mayank Jain, Principal at Stellaris Venture Partners, cited three key factors behind their investment: "An attractive market of affordable fashion for GenZ, along with the team's unique and differentiated 'test & quick react' solution approach and a strong founder-market fit."