E-commerce
Alaya By Stage3 raises seed funding to hit ₹50 crore ARR, and AI is at the centre of the plan
Gurugram-based ethnic wear brand Alaya By Stage3 has closed an undisclosed seed funding round led by LC Nueva AIF, with additional participation from a Delhi-based high-net-worth investor. The round was facilitated by Brightbridge Advisors as investment bankers.
The brand, operated by Cosmo Brands Private Limited, is currently tracking towards ₹20 crore in annual recurring revenue and has set a target of ₹50 crore ARR within the next two years, supported by the fresh capital and a larger institutional fundraise planned for later in 2026. The funding follows what the company describes as a fivefold revenue increase over the past two years, growth achieved while keeping the brand capital-efficient and primarily digital-first. Alaya By Stage3 sells through its own website and major online marketplaces, including Nykaa Fashion and Amazon, and has expanded beyond India into five international markets.
How the capital will be deployed — and why AI is central
The bulk of the seed round will go toward resolving operational constraints that have emerged alongside rapid demand growth. Alaya By Stage3 plans to scale its warehousing infrastructure, expand inventory and production capacity, and strengthen its supply chain ahead of peak festive season demand, the period that has historically driven the sharpest spikes in revenue for Indian ethnic wear brands. A significant portion of the funding is allocated specifically to artificial intelligence integration across the business.
Ethnic wear brand Alaya By Stage3
The company is embedding AI across demand forecasting, inventory planning, performance marketing, creative production, and supply chain management, a deliberate move to build a leaner operating model that can scale without proportional increases in headcount. For the founders, AI is not a future ambition but a current operational priority.
The gap Alaya By Stage3 is building a business in
India’s ethnic wear market is large, growing, and structurally fragmented. At one end sits premium designer wear; at the other, a vast unorganised segment competing on price alone. Alaya By Stage3 is positioning in the middle, design-led, quality-focused ethnic wear at accessible price points, targeting the modern Indian consumer who wants both cultural authenticity and contemporary aesthetics without the designer price tag.
The brand recently extended its range with the launch of Alaya Kids, a children’s ethnic wear line, as part of a broader ambition to evolve from a fashion label into a full lifestyle brand. With festive-season tailwinds, growing international traction, and a larger institutional round expected before year’s end, Alaya By Stage3 is making its most deliberate growth push yet, and doing so in a market where digital-first, design-led brands are increasingly gaining ground over both their unorganised and legacy competitors.
