Matrix Partners leads investment in design-led hybrid retailer Chumbak

Bangalore-based Chumbak Design Pvt Ltd, the company behind Chumbak.com, a design-led consumer products e-tailer, has raised an undisclosed amount in funding led by Matrix Partners India, with participation from existing investor Seedfund.

"With this round of funding, we will continue to deliver amazing and fun products to our customers, expand our footprint and also enter into new product categories. In addition to this, we are looking to increase the contribution of online sales to the overall revenue," said Vivek Prabhakar, founder and CEO of Chumbak.

The company was founded in 2010 by Prabhakar, who had earlier worked at companies like Titan, Motorola and Sun Microsystems. The startup designs and manufactures souvenirs, travel & tech accessories, jewellery & apparel, fridge magnets, keychains, t-shirts, coffee mugs and phone cases all of which are inspired by everyday Indian sights and experiences.

The products contain witty India-themed graphics and are sold through exclusive Chumbak stores, various department stores and other outlets in Bangalore, Mumbai, Delhi, Hyderabad, Pune and Chennai. The company also ships its products pan-India through its own site as well as other websites. The firm previously raised $2 million from Seedfund.

In an interaction with Techcircle.in last month, Prabhakar said that the company is already profitable.

"The Chumbak team has a unique mix of design sensibilities and strong business acumen. The consumer sector is a high priority area for the firm," said Rishi Navani, managing director, Matrix Partners India.

Matrix Partners India is an investment firm with Rs 3,000 crore under management. The firm invests in companies targeting the Indian consumer market at the seed, early and early-growth stages. Matrix Partners India has previously invested in a number of tech and non-tech companies, including mobile PoS firm Mswipe, online classified site Quikr and local language mobile platform NewsHunt.

Chumbak is the second fresh deal for Matrix Partners India since January this year. It had earlier invested in Chennai-based NBFC Five Star Credit. The investment firm had also put more money in existing portfolio firms such as Quikr and LimeRoad.

(Edited by Joby Puthuparampil Johnson)