Kaytes: Tracing Commoditization in a Consumer Brand Portfolio

Akhil led the valuation of a consumer luggage brand that had grown strongly in its early years but had stagnated over the prior two years. The fund that held the investment had entered at a multiple of around twelve times revenue and was expecting continued growth to support a high valuation.

As Akhil analyzed the company, he tracked what was happening in the broader luggage and bag category. A wave of new entrants had entered the market, all targeting the same price range and competing on performance marketing. The cost of acquiring customers through paid search and social had risen sharply as brands bid on the same keywords. Companies were simultaneously discounting to win customers and spending more to reach them, compressing unit economics from both sides.

He connected the unlisted picture to the listed market. VIP Industries, one of India's leading luggage brands, had seen its stock decline in FY26, reflecting the same category dynamics. This gave Akhil confidence that the multiple compression he was applying to the unlisted company was grounded in real market evidence, not just a conservative assumption.

When he presented the valuation to the fund's investment team, they had expected a higher number. Akhil walked them through the comparable transaction data, showing that recent funding rounds for luggage and bag companies had been priced at four to five times revenue. He valued the portfolio company at 4.5 times, against the fund's entry multiple of twelve times. The investment team accepted the analysis once they saw the market evidence behind it.