How Big Business Houses Are Tapping into the Power of Fashion Apparel start-ups

In the past decade, India’s fashion landscape has undergone a major transformation, driven largely by the rise of digital-first start-ups that have redefined how people shop for clothes. These young brands have carved strong identities in niche markets—from ethnic wear to intimate apparel to fashion discovery platforms. Recognizing the immense potential these start-ups hold, India’s largest business houses are increasingly acquiring or investing in them.

According to a 2024 Bain & Company report, over $1.5 billion has been invested in Indian D2C (direct-to-consumer) fashion brands between 2019 and 2024, with acquisitions making up a significant portion.

This wave of acquisitions marks a strategic shift: rather than building new brands from the ground up, traditional retail giants are choosing to buy innovation, agility, and access to new-age consumers. The result is a win-win situation for both sides of the equation.

Why Are Big Business Houses Acquiring Fashion Start-Ups?

1. Born Digital, Built for Speed

Most fashion start-ups launched in the 2010s were built with a digital-first approach. They understand online consumer behavior, social commerce, influencer marketing, and fast fashion trends better than many traditional players. By acquiring these businesses, large conglomerates can leapfrog years of digital learning and quickly gain a foothold in the fast-growing e-commerce space.

2. Access to Niche, High-Growth Markets

Start-ups like Zivame and Clovia disrupted the lingerie and intimate wear segment by offering stylish, size-inclusive, and discreet options in a market previously underserved by large brands. Similarly, Jaypore positioned itself as a premium ethnic wear label with an artisanal, handcrafted ethos. These acquisitions allow conglomerates to diversify their brand portfolio and cater to new and emerging customer segments.

3. Strong Brand Identity and Consumer Loyalty

Many of these start-ups have cultivated loyal customer bases through unique brand voices, curated collections, and personalized experiences. For established business houses, acquiring these brands is not just about product expansion—it’s about inheriting trust, credibility, and community.

4. Innovation and Agility

Start-ups typically operate with lean structures, fast decision-making, and a focus on experimentation—whether it’s in design, pricing, or customer experience. Traditional businesses benefit from this agility, while offering scale, operational infrastructure, and distribution support in return.

How Acquisitions Benefit Both Parties

These deals offer clear strategic value for both the acquirer and the acquired:

Benefits for Start-Ups

• Access to Capital: Acquisitions provide crucial funding that can be used to expand product lines, improve technology, and scale operations.
• Infrastructure & Supply Chain: Start-ups can leverage the acquirer's backend infrastructure, logistics, and retail networks.
• Faster Growth: With the resources and reach of a large parent company, start-ups can penetrate new markets and grow more rapidly than they could alone.

Benefits for Business Houses

• Digital Acceleration: Acquiring tech-savvy companies helps conglomerates stay relevant in a digital-first retail world.
• Customer Expansion: These deals open up new demographics, especially in urban and semi-urban online shoppers.
• Brand Synergies: Integrating new brands into existing ecosystems allows for cross-selling, bundling, and loyalty program expansions.

Key Acquisitions In The Recent Past

Aditya Birla Fashion & Retail Ltd (ABFRL) – Jaypore and House of Masaba

In 2019, ABFRL acquired Jaypore, a curated brand focused on premium Indian ethnic wear and artisanal products. The acquisition was part of ABFRL’s strategy to strengthen its presence in the fast-growing ethnic wear segment and appeal to affluent, culture-conscious consumers.

In 2023, Aditya Birla Fashion & Retail Ltd (ABFRL) made headlines by acquiring a 51% stake in House of Masaba, the eclectic lifestyle brand founded by designer Masaba Gupta. Known for its bold prints, pop-culture references, and inclusive ethos, House of Masaba spans apparel, beauty, jewelry, and lifestyle products. This acquisition reflects ABFRL’s strategic push into the bridge-to-luxury and multi-category lifestyle segments. The move allows ABFRL to leverage Masaba’s strong personal brand and her digital-first, culturally resonant consumer base, while providing the startup with resources to scale across categories and geographies.

Reliance Retail – Zivame and Clovia

Reliance Retail, through its subsidiary Reliance Brands, made bold moves into the women's lingerie market by acquiring major stakes in Zivame (2020) and Clovia (2022). Both brands were instrumental in normalizing intimate wear conversations in India and offered high-quality, fashion-forward products online. The acquisitions bolstered Reliance's portfolio in a previously underrepresented but rapidly growing segment.

V-Mart – Limeroad

In 2022, V-Mart Retail acquired a majority stake in Limeroad, a social commerce-driven fashion platform known for trend curation and influencer-led discovery. The move allowed V-Mart, which has a strong offline presence in Tier 2 and Tier 3 cities, to enhance its digital presence and blend traditional retail with new-age online engagement.

“Through LimeRoad, we are creating retail stores that reflect the same digital-first, clutter-free, vibrant experience that today’s young consumers expect. These stores are designed to be colourful, interactive, and engaging—mirroring the online experience offline,” says Lalit Agarwal, Chairman & Managing Director of V-Mart.

A Marriage of Scale and Spirit

What we’re witnessing is not just corporate expansion—it’s a transformative fusion of legacy and innovation. Traditional conglomerates bring structure, capital, and scale. Start-ups bring imagination, cultural pulse, and digital prowess.

As fashion becomes more personalized, inclusive, and identity-driven, these partnerships will define the next generation of Indian retail.

India Fashion Story: The Way Forward

In India, the online fashion retail market is projected to reach $43 billion by 2027, according to Statista, making it one of the top three e-commerce categories.

And the acquisition of fashion start-ups by India’s business powerhouses marks a pivotal moment in the industry’s evolution. It’s no longer just about buying a brand—it's about buying culture, community, and creativity. As consumer preferences shift rapidly and digital becomes the default, these strategic alliances are not just smart—they're essential.

Such collaborations are re-shaping fashion ecosystem, making it faster, more inclusive, and deeply in tune with the modern Indian shopper.