India’s sneaker market is attracting a new generation of homegrown brands looking to challenge the dominance of established international labels. From culturally inspired designs to comfort-led footwear and community-driven branding, companies such as Neeman’s, Comet and Gully Labs are building distinct propositions for Indian consumers. But as competition intensifies, the bigger challenge for these businesses is turning growing consumer interest into sustainable financial performance.
Neeman’s, one of the early entrants in this space, reported a 73% year-on-year increase in revenue from operations to ₹180 crore in FY26, compared with ₹104 crore in FY25. The Hyderabad-based footwear brand also narrowed its net loss by 30.4% to approximately ₹16 crore during the year, indicating an improvement in its financial performance as the business scaled.
Founded in 2017 by Taranjeet Singh Chhabra and Amar Preet Singh, Neeman’s operates on a direct-to-consumer (D2C) model and initially built its proposition around comfortable footwear made using materials such as merino wool and recycled fibres. Its portfolio has since expanded beyond its original footwear offerings to include sneakers, loafers, slides, flip-flops and sandals.
Footwear sales remained the company’s sole source of operating revenue in FY26. It generated an additional ₹3 crore through other income, taking total income to approximately ₹183 crore, compared with ₹107 crore in the previous fiscal.
Revenue growth outpaces expense expansion
Neeman’s total expenditure increased 53.1% to approximately ₹199 crore in FY26, growing at a slower pace than its 73% revenue growth. This helped the company reduce its losses despite higher spending across major cost categories.
Material procurement remained the largest expense, rising 58.3% to ₹76 crore from ₹48 crore in FY25. Employee benefit expenses stood at ₹19.43 crore, while advertising and marketing expenditure increased 57.1% to ₹45 crore. The rise in marketing costs highlights the investment required to acquire customers and build brand visibility in an increasingly competitive footwear market.
The company spent approximately ₹1.11 for every rupee of operating revenue. Its EBITDA margin improved to -7.21%, while return on capital employed (ROCE) stood at -28.46%. Both indicators point to the distance the business still needs to cover before achieving sustainable profitability.
Capital continues to flow into homegrown sneaker brands
Investor interest in India’s homegrown sneaker segment has also strengthened. In September 2026, Bengaluru-based Comet raised ₹100 crore in a Series B round led by Verlinvest, with participation from existing investors Elevation Capital and Nexus Venture Partners. The company plans to use the capital to expand its retail presence and invest in product development and footwear technology.
Earlier in January, Delhi-based Gully Labs raised ₹26.5 crore in a Series A round led by Saama Capital, with participation from existing investor Zeropearl and other investors. The brand, which draws on Indian cultural references for its designs, is also expanding its product portfolio and offline presence.
Neeman’s itself has attracted investors including Grand Anicut and Sharrp Ventures, among others, as it has raised capital to support its growth.
The funding activity reflects growing confidence in the potential of India’s homegrown footwear market. However, the opportunity extends beyond sneaker trends or new product launches. Brands must build distinctive products, maintain repeat purchase rates, manage customer acquisition costs and establish efficient distribution networks.
For Neeman’s, FY26 marks a year of strong revenue growth and narrowing losses. The next challenge will be converting that momentum into positive operating margins and sustainable profitability. As more Indian brands enter the sneaker market, the winners will ultimately be those that can build lasting consumer demand alongside disciplined business economics.
Sources: Entrackr, Business Standard, company filings and publicly available company information.
