Summary:

  • DailyObjects, which was founded in 2012 by Pankaj Garg, has steadily grown into a well-recognized brand in the lifestyle accessories space.

  • This fresh capital infusion comes from 360 One Ventures.

  • Roots Ventures remains the largest external shareholder with a 27.8% stake in the company

DailyObjects, a direct-to-consumer (D2C) tech accessories and lifestyle brand based in Gurugram, has raised Rs 86 crore (equivalent to over $10 million) in a new funding round. This fresh capital infusion comes from 360 One Ventures, marking a significant milestone for the company after a hiatus of 30 months since its last funding round. The investment represents a crucial step in DailyObjects’ growth journey as it seeks to solidify its market presence and expand its operations.

According to regulatory filings accessed from the Registrar of Companies (RoC), the board at DailyObjects has passed a special resolution to issue 8,118 compulsory convertible preference shares. These shares, priced to raise Rs 72 crore (around $8.6 million), are part of a larger Series B funding round that is expected to close at approximately $10 million. This strategic move indicates the company’s intention to use these funds to meet several financial objectives, including working capital requirements, expansion plans, and other general corporate purposes.

The infusion of capital comes at a time when DailyObjects is positioning itself for significant growth. As a tech accessories and lifestyle brand, the company offers a wide range of products such as bags, wallets, charging solutions, stationery, and various other accessories. While its primary business model is centred around the direct-to-consumer space, the brand made a key move into offline retail by opening its first physical store in December of the previous year. This decision underscores the brand’s ambition to tap into a broader market by blending its online presence with a brick-and-mortar experience, catering to customers who prefer in-person shopping.

Beyond the financial aspect of the funding round, DailyObjects has also made a notable change to its Employee Stock Option Plan (ESOP). The company has expanded its ESOP pool by adding 1,450 options, bringing the total available options to 2,780. This increase has raised the overall value of the ESOP pool to Rs 24.65 crore. The expansion of the ESOP pool reflects the company’s strategy to retain and incentivize its employees, aligning their interests with the company’s long-term growth objectives. In an increasingly competitive market, offering attractive stock options can be a powerful tool to attract top talent and ensure employee loyalty.
Following the fresh investment, the shareholding structure of DailyObjects has shifted.

Roots Ventures remains the largest external shareholder with a 27.8% stake in the company. The new investor, 360 One Ventures, now holds an 18.84% stake. The co-founders, Pankaj Garg and Saurav Adlakha, collectively own 43.07% of the company. This strategic mix of ownership indicates a balanced approach between external investors and the founders, ensuring that the company maintains strong leadership from its original visionaries while benefiting from the expertise and financial backing of venture capital firms.

DailyObjects, which was founded in 2012 by Pankaj Garg, has steadily grown into a well-recognized brand in the lifestyle accessories space. Over the years, it has developed a reputation for offering stylish and functional products that appeal to tech-savvy consumers looking for quality accessories. The brand’s ability to stay relevant and competitive in a fast-changing market has been key to its success.

In the fiscal year ending March 2023, DailyObjects posted impressive financial results, with its revenue more than doubling to Rs 83 crore. Perhaps even more notable is that the company achieved a positive bottom line, indicating that it is not only growing rapidly but also managing to stay profitable—a rare combination in the fast-paced world of D2C brands. While the company has yet to disclose its results for FY24, the current trajectory suggests that DailyObjects is poised for further growth, especially with the new capital injection.

In terms of competition, DailyObjects faces a significant rival in Chumbak, another lifestyle brand that was acquired by the e-commerce roll-up firm G.O.A.T Brand Labs in January of last year. Chumbak’s acquisition reflects the increasing consolidation in the lifestyle accessories space, where established brands are being snapped up by larger players looking to expand their portfolios. However, DailyObjects’ strong brand identity and focus on innovation, along with its expanding offline presence, give it a competitive edge in this crowded market.

In conclusion, the recent funding round and strategic developments at DailyObjects signal a new phase of growth for the company. With strong investor backing, an expanding product portfolio, and a focus on both online and offline retail channels, the company is well-positioned to capitalize on opportunities in the tech accessories and lifestyle market. As it continues to grow, DailyObjects will need to navigate the challenges posed by competition and market shifts while maintaining its focus on profitability and innovation.