Tech-led retail firm Ace Turtle has raised $5 million in a bridge funding round led by existing investor Vertex Holdings, strengthening its balance sheet as it prepares for a larger capital raise next year. The round also saw participation from the company’s co-founders, Berry Singh and Nitin Chhabra, underlining continued promoter confidence in the business.
The latest infusion comes after a nearly two-year gap in fundraising for the Bengaluru-based company. With this round, Ace Turtle’s total funding to date stands at around $48 million, including a $34 million round led by Vertex Ventures in May 2023 and a $4 million pre-Series B round in July 2019.
Focus on runway, stores, and efficiency
According to people familiar with the development, the fresh capital will be used primarily to support working capital requirements, expand offline retail presence, and extend the company’s financial runway. This funding is expected to help Ace Turtle navigate a challenging discretionary consumption environment while positioning itself for its next phase of growth.
Ace Turtle operates and distributes several global apparel brands in India, including Lee, Wrangler, and G-Star Raw, through a combination of online platforms and an expanding network of physical stores. Over the past year, the company has sharpened its focus on cost discipline while selectively scaling its brick-and-mortar footprint to drive omnichannel demand.
Path to profitability
The company is targeting EBITDA breakeven by December 2025, a key milestone as it works toward sustainable profitability. Management has indicated that improved inventory management, better store-level economics, and higher contribution from offline channels are expected to support margin expansion over the coming years.
Outlook
As consumer demand remains uneven across categories, Ace Turtle’s strategy of blending digital-first capabilities with physical retail is aimed at improving customer reach and unit economics. The bridge round provides near-term stability and flexibility, giving the company time to demonstrate operating leverage ahead of a larger fundraising round planned for next year.
With established brand partnerships and a clearer profitability roadmap, Ace Turtle is positioning itself to capitalise on a recovery in India’s premium and mid market apparel segment.
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