Chennai-based women’s fashion and apparel startup Fashor, on Wednesday (January 1), announced that it has raised $1 Mn (INR 7.1 Cr) in a Pre-Series A funding round led by an early-stage and seed-stage venture capital firm Sprout Venture Partners. The round also saw participation from IP Ventures, Venture Catalysts and other investors.
Fashor plans to use the funds to expand to other online and offline channels.
Fashor was founded by Vikram Kankaria and Priyanka Kankaria in 2017. The company offers trendy Indian and Indo-western clothing for women. It aims to capitalise on the women’s apparel industry by providing affordable, high-quality products and a variety of design options to its customers across India. Currently, the company has over 75K customers and claims to generate over 70% profit through its website and mobile app.
Vikram Kankaria, Co-founder of Fashor, said, “Fashion is the first category that most consumers buy online and is soon going to emerge as the largest ecom category. Very few brands currently exist and over 80 percent of the $21 billion women’s apparel industry is unbranded. The company is well placed to capitalise on this growth opportunity for branded players and has seen strong traction since inception. The funding will help the company in accelerating growth and will help Fashor become a leading affordable fashion brand.”
The startup claims that it is already India’s largest brand in terms of the number of designs launched. It added that it has over 75,000 customers and over 70 percent of its revenue comes from its website and app.
Sprout Venture Partners, co-founded by Sunil Jain and Sahil Gupta, is an early-stage VC fund, which invests in product technology companies and consumer brands at seed and Pre-series A stage. Founded in 2017, it has already backed startups like Absentia, Goals101, Trell, HealthFin, Fitso, and Advantage Club.
Sahil Gupta, Partner, Sprout Venture Partners, said, “We like Fashor as there is a need for brands in the women’s wear market owing to a shift to branded clothing, because of the rise in fashion consciousness and increasing disposable incomes.”
At present, Indian ecommerce is ruled by companies like Myntra, Jabong, Club Factory among others. However, a lot of private labels and startups have emerged in the market with unique business models to make fashion affordable, accessible, personalised and more. This, in a way, is attracting a lot of investors like never before. In November 2019, Alia Bhatt backed personal styling platform StyleCracker raised $2 Mn from US-based investor AMJ Ventures. Women-centred ecommerce platform SimSim also raised $6 Mn (INR 43.49 Cr) in a Series A funding round led by Accel India and China-based Shunwei Capital.
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