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Gurugram-based Alaya By Stage3, a modern Indian wear brand operated by Cosmo Brands, has raised an undisclosed seed funding round led by LC Nueva AIF, with participation from a Delhi-based HNI.
The company stated that the capital will be utilized to expand operations and enhance supply chain capabilities ahead of peak festive demand, while also integrating AI across various functions, including demand forecasting, inventory planning, marketing, and customer experience, to improve operational efficiency.
Operated by Cosmo Brands Private Limited, Alaya By Stage3 has seen growth over the past two years and is currently on track to reach ₹20 crore in annual recurring revenue, with a target of ₹50 crore ARR over the next two years, supported by investments in infrastructure, efficiency, and AI-led automation.
Alaya By Stage3 operates in India’s ethnic wear market, which continues to see growth driven by rising discretionary spending, social media-driven fashion trends, and increasing consumer interest in cultural apparel. The brand focuses on delivering design-led ethnic wear at accessible price points, positioning itself between premium designer offerings and unorganised alternatives.
Speaking about the funding round, Himanshi Kamra, Co-founder and CEO of Alaya said, “We are seeing significant traction, particularly during festive seasons, and hence require deeper inventory and stronger backend infrastructure to sustain growth while moving toward profitability. At the same time, we are actively embedding AI models and adding intelligent layers across our business – from design and merchandising to marketing and supply chain, to run a leaner, sharper, and more scalable organization as we grow.”
“We have built a strong product-market fit in the design-led ethnic wear segment, and now we want to focus on scaling execution by removing any logistics and supply chain bottlenecks. AI is central to how we are rethinking our operating model. We are using it to sharpen performance marketing, improve planning accuracy, and build workflows that would otherwise require much larger teams,” Jatin Grover, Co-founder & CBO of Alaya by Stage3 added.
The company has also diversified its portfolio with the launch of Alaya Kids, a children’s ethnic wear line, as part of its strategy to build a broader lifestyle brand.
Commenting on the investment in the company, a Delhi-based angel investor said, “Alaya by Stage3 has demonstrated strong growth while maintaining capital efficiency. The team’s ability to scale revenue more than five times in two years, combined with their thoughtful adoption of AI across the business, reflects a clear understanding of the consumer market and disciplined execution.”
“The Indian ethnic wear market is growing fast, and Alaya is in the right place at the right time. They have built a brand that offers great design without the high price tag, and the founders have executed really well. This funding gives them a solid base to grow further,” Anukul from Brightbridge added.
The company said it plans to deepen its presence in existing markets while expanding into new geographies, alongside continued investment in product development, infrastructure, and AI-driven efficiencies to improve margins.
The round was advised by Brightbridge Advisors, which acted as the investment banker for the transaction.