For Meher, a handbag is more than just an accessory or a fashion statement — it’s a companion that moves with her through the day. From an oversized tote for work to a compact crossbody for casual evenings, every bag she carries tells its own story — from its origin, to its place in her life. And, increasingly, those stories are being crafted by Indian handbag startups that are redefining the segment with unique designs, sustainable materials, and a keen understanding of what modern Indian consumers want.
Home-grown handbag brands like Zouk, Miraggio, and DailyObjects have rapidly captured a significant market share with their unique positioning.
The sector has also attracted steady funding in the last five years, totalling about $37.2 million, according to data from market intelligence platform Tracxn. Funding peaked in 2024 at $20 million across two rounds, while it stood at $10.5 million across four rounds in 2023.
Market opportunity
The Indian handbag market has traditionally been dominated by international brands or local mass-market products, says Mohit Jain, founder of Miraggio.
Miraggio launches new collections every month, aimed at spurring repeat purchases
Consumers often buy multiple handbags in a year, including work bags, casual bags, and occasion-specific clutches. But “there was no single brand that stood out as the go-to option”, he says, adding that his company set out to solve this pain point. Moreover, post Covid, consumer preferences have shifted towards aesthetic looks, functionality, and affordability, he observes.
Brand positioning
Startups in the handbag segment are differentiating themselves from established players through a mix of design, pricing, and product functionality.
Rising disposable incomes and aspirational shopping habits are driving the demand for mid-premium handbags.
D2C brand Zouk’s design language is India-centric, drawing inspiration from multiple cities, monuments, and cultural elements.
“Most legacy brands copy Western designs or source products from China. We saw a gap for a distinctly Indian design language,” says Pradeep Krishnakumar, co-founder, Zouk. The company manufactures all its handbags in India and works with local artisans.
DailyObjects sports a contemporary, minimalistic look
Gurugram-based Mirragio, which positions itself in the premium handbags segment, launches new collections every month, aimed at spurring repeat purchases. “We are the only brand in India that launches handbags every month. This allows us to stay ahead of trends and create a repeat buying habit,”says Jain.
Meanwhile, DailyObjects goes for a “contemporary, minimalistic appeal”. Pankaj Garg, co-founder and CEO, says, “Our goal was to create a product that seamlessly serves modern-day use cases while integrating form and function — accessories and bags that are versatile enough for work, travel, and daily use.”
Sales and distribution
Even as they increasingly extend into offline retail too, the new-age D2C handbag brands have mainly built themselves through e-commerce.
Zouk is even listing its products on quick commerce platforms.
“Quick commerce was a surprising, yet promising category for us. We started it as an experiment and are now available across major platforms,” says Krishnakumar.
For Miraggio, 30 per cent of revenue comes from its website and 70 per cent from marketplaces. The company wants to shift this balance in favour of direct sales. “Our goal is to have 60-70 per cent of our business from our channels within three to four years,” says Jain.
Offline, Zouk has opened nine stores and plans to reach 25 in the first phase. “When we spoke to customers, many said they wanted to see the product before buying. Since 75-80 per cent of handbag purchases still happen offline, this was a logical step,” says Krishnakumar.
Miraggio plans to open retail stores in FY26, with a focus on personalisation, “where you can customise the strap or add initials”.
In the case of DailyObjects, 60 per cent of its consumers are from Tier 1 cities, alongside a growing demand from Tier 2 centres. Most of its sales are through its website, as also leading e-commerce marketplaces. It has also hopped aboard quick commerce platforms.
“Our annual recurring revenue (ARR) stands at approximately ₹200 crore, with a strong year-on-year growth of 40 per cent. Our primary focus remains on scaling up the brand, and expanding our market presence… we are prioritising reinvestment over the bottom-line. We have consistently been EBITDA positive for the last five years,” says Garg.
Miraggio projects ₹115 crore in gross merchandise value (GMV) for FY25 and ₹220 crore in FY26, with an expected EBITDA break-even in FY25.
International expansion is also on the horizon. Zouk aims to take “Indian style to the world”.
Manufacturing heft
“India has outstanding manufacturing capabilities. We feel very happy that a large portion of our bags are still handmade, giving them sturdiness and authenticity,” says Krishnakumar. The company also sources raw materials domestically, reinforcing its commitment to Indian craftsmanship.
DailyObjects, too, has in-house manufacturing capabilities, with a dedicated team of 1,000 skilled artisans.
Miraggio, on the other hand, manufactures its handbags in China and is exploring expansion into Myanmar and Vietnam. The company uses a contract manufacturing model, allowing it to scale up production rapidly while focusing on frequent new product launches.
Challenges
Inventory management, competition from international players, and design piracy by local players are among the key challenges facing home-grown handbag startups.
“Mass-market players can quickly copy your designs. The key is to create differentiation and stay ahead of trends,” says Jain.
