Just as many direct-to-consumer (D2C) categories grapple with crowded markets and rising customer acquisition costs, an unlikely segment is attracting both shoppers and investors: online-first saree brands.
According to Tracxn, there are around 54 online-first saree startups. Brands such as Suta, Sudhathi, Shobitam, Mrida, Hassiny, Kalki Fashion, Taneira and Kathai are among those building digital-first businesses around a category long dominated by fragmented offline retail. Venture capital firms, including Z47, Accel, 3 Peaks Ventures, Blume Ventures, Eaglewings Ventures and All In Capital, have backed companies in the segment.
Shift From Ceremonial Wear
The renewed interest is partly being driven by changing fashion preferences among younger consumers. Founders say Gen Z shoppers are experimenting with styling—pairing sarees with shirts, belts or sneakers—and treating the garment less as ceremonial wear and more as a form of personal expression. Lighter fabrics such as linen and Chanderi are also gaining traction.
“For Gen Z, it is about individuality,” said Shriya Nagi, co-founder of Mrida. She added that women in their late thirties and forties are also returning to saree as workwear after years of western office attire. “They know what suits them and are choosing the saree because it is elegant and distinctive in a professional setting,” Nagi said, adding that the shift reflects a deliberate wardrobe choice rather than nostalgia.
Launched in 2023 as an online-first handloom saree brand, Mrida says it has maintained year-on-year growth of around 35-45% since its inception.
Investor interest, though still modest compared with larger D2C categories, has been steady. Tracxn data show that D2C saree brands raised roughly $25 million across 10 funding rounds in 2024 and 2025. Industry observers say the attraction lies in consistent double-digit growth and a retail expansion strategy that combines digital channels with selective physical stores.
In April 2025, occasion-wear brand Kalki Fashion raised Rs 225 crore in a Series A round led by Lighthouse Funds. The company has since focused on expanding its retail footprint across tier-1 and 2 cities, while strengthening its D2C platform, with sarees remaining a core category.
Scaling the Unorganised
New distribution formats are also emerging. As quick commerce platforms expand into fashion, saree brands are beginning to test the channel. Sudhathi, a Surat-based digital-first ethnic wear label, became the first saree brand last year to offer deliveries through Blinkit and Swiggy Instamart.
“Saree is the last major ethnic wear category yet to formalise, which is why it represents a structured retail opportunity,” Darshan Dudhoria, CEO of Indian Silk House Agencies, a 52-year-old saree retail chain, told FE.
The scale of the opportunity is large. Industry estimates peg the saree market at about Rs 80,000 crore, catering to roughly 600 million women, with about 95% of the sector still unorganised. As organised brands gain traction, investors are increasingly backing companies that demonstrate consistent growth and operational discipline, Dudhoria said. His company has recorded 55% y-o-y growth for four consecutive years.
Product innovation is also helping broaden the customer base. Pre-draped and “one-minute” sarees have gained popularity among younger buyers who want traditional aesthetics with easier wearability.
“We are seeing strong interest from millennials and Gen Z shoppers in lightweight organza and chiffon sarees, pre-draped styles and contemporary blouse pairings,” Saurabh Gupta, founder and CEO of Kalki Fashion, said.
Several brands report that younger consumers now form a significant share of their customer base. Hassiny, launched in November 2025, says around 35-40% of its buyers come from this demographic. Kathai, which began operations in October 2025, says about 60-70% of its customers fall in the younger age bracket and the company is seeing roughly 50% month-on-month sales growth.
Many of these brands rely heavily on social commerce channels such as Instagram and WhatsApp, along with pop-ups and word-of-mouth marketing. Repeat purchases are increasingly becoming a key growth driver. “A significant share of our orders now comes from returning customers, which we see as validation of our product quality and customer experience,” said Shilpa Chandole, co-founder of Sahodaree.
Price positioning has also helped widen the market. Entry-level sarees from several online brands begin around `699 and typically go up to about Rs 4,999.
With influencer-led discovery on social media, a broader cultural shift towards Indian wear and demand from the global diaspora, founders say the category is gaining momentum.
For D2C startups struggling to find profitable niches, the saree – long seen as a traditional mainstay – may be emerging as an unexpectedly modern growth story.