\n
![](\"https:\/\/static.fibre2fashion.com\/Newsresource\/images\/313\/chatgpt-image-sep-28-6_325393.jpg\")
<\/p>\n
\n<\/p>\n
India\u2019s domestic apparel market is entering a more selective phase. Revenue growth remains important, but investors and retailers are placing greater emphasis on profitability, retention, productivity and capital discipline. Two developments in early September *<\/span>*<\/span>*<\/span>*<\/span> illustrate the shift. Men\u2019s essentials brand DaMENSCH raised *<\/span>*<\/span>*<\/span>*<\/span>;*<\/span>*<\/span>.*<\/span>*<\/span> crore (~$*<\/span>.*<\/span>*<\/span> million) from A*<\/span>*<\/span> Partners and Tancom Electronics at a reported valuation of about *<\/span>*<\/span>*<\/span>*<\/span>;*<\/span>*<\/span>*<\/span> crore (~$*<\/span>*<\/span>.*<\/span>*<\/span> million), broadly flat with its previous reported valuation and lower in dollar terms. In retail, Aditya Birla Fashion and Retail (ABFRL) reshaped its Pantaloons chain, re-entering Nagaland even as its national store count edged down. Together, they point to greater emphasis on profitability, scale and capital discipline.<\/p>\n Indian direct-to-consumer (D*<\/span>C) funding has been repriced rather than withdrawn. Capital is becoming more selective, with attention on business quality, repeat purchases, retention and profitability. Larger rounds increasingly depend on evidence that a brand can scale without allowing losses to rise at the same pace. DaMENSCH sits within that tighter funding environment. Its latest round was reported at a broadly unchanged valuation, while revenue rose to *<\/span>*<\/span>*<\/span>*<\/span>;*<\/span>*<\/span>*<\/span> crore (~$*<\/span>*<\/span>.*<\/span> million) in FY*<\/span>*<\/span> and the company remained loss-making. The DaMENSCH transaction suggests that revenue growth alone may provide less support for higher valuations in the current funding environment.<\/p>\n\tD*<\/span>C funding is becoming more selective<\/strong><\/h3>\n