Bengaluru-based direct-to-consumer (D2C) toymaker Legend of Toys has raised ₹21 Cr in a funding round led by IvyCap Ventures. The capital will be used to expand into new product categories, enhance supply chain capabilities, and bolster technology infrastructure, the company announced on May 15. This infusion aims to strengthen Legend of Toys’ position in the educational toy segment while enabling growth into adjacent areas 1.
The ₹21 Cr funding round was led by IvyCap Ventures, a Mumbai-based early-stage venture capital firm. Other participants in the round included existing investors such as Inflection Point Ventures and a group of angel investors. Legend of Toys, founded in 2018, specializes in manufacturing and selling educational and STEM-based toys through its online platform, catering to a growing demand for interactive learning tools 1.
Legend of Toys plans to utilize the fresh capital to diversify its product portfolio beyond its current range of educational toys. The company aims to introduce new categories, including board games, puzzles, and outdoor play equipment, targeting children across different age groups. The expansion is expected to commence in the second half of 2025, marking a strategic move to broaden its market reach 1.
In addition to product expansion, the company will allocate a portion of the funds to strengthen its supply chain and logistics operations. Legend of Toys currently operates a manufacturing unit in Bengaluru and sources raw materials from domestic suppliers. The investment will enable the company to scale production capacity and reduce lead times for deliveries, improving overall operational efficiency 1.
The toymaker also intends to invest in technology upgrades, including the development of an AI-driven recommendation engine for its e-commerce platform. The tool will personalize product suggestions based on customer preferences and purchase history, aiming to enhance user engagement and repeat purchases. The feature is slated for launch in early 2026, reflecting the company’s focus on leveraging technology to boost sales 1.
Legend of Toys reported a 120% year-on-year growth in revenue for the fiscal year 2024, reaching ₹45 Cr. The company attributes its growth to increased demand for educational toys and a shift in consumer preferences toward D2C brands. The toymaker currently serves over 500,000 customers across India, with a strong presence in metropolitan cities like Bengaluru, Mumbai, and Delhi 1.
IvyCap Ventures, the lead investor, manages assets worth over $500 Mn and has a portfolio of more than 50 startups across sectors such as consumer brands, SaaS, and fintech. The firm’s decision to invest in Legend of Toys aligns with its focus on backing scalable D2C businesses in India. Vikram Gupta, Founder and Managing Partner at IvyCap Ventures, stated, "Legend of Toys has demonstrated strong traction in a niche segment, and we are confident in their ability to disrupt the traditional toy market" 1.
The Indian toy industry is projected to grow at a compound annual growth rate (CAGR) of 12% between 2023 and 2028, driven by rising disposable incomes and a growing preference for educational and STEM-based toys. Legend of Toys competes with brands like Funskool, Lego India, and local D2C players such as Skillmatics and PlayShifu. The company differentiates itself through its focus on affordability and localized manufacturing 1.