Mumbai-based personal styling platform, StyleCracker, on Thursday, announced that it has raised $2 Mn from US-based investor AMJ Ventures. The startup has been backed by Bollywood actor Alia Bhatt.
With the new funds, the company plans to increase its presence in the country, build out capabilities in machine learning and strengthen its position in the personalisation fashion market.
According to the cofounder and managing director, Dhimaan Shah, StyleCracker has grown at an annual growth rate (CAGR) of over 150% and is on track to grow the business by 250% this financial year, especially after its funding from AMJ Ventures. “The rapid growth is complemented by healthy economics with the Company turning profitable at a unit economic level,” Shah added.
Anish Patel, founding Partner at AMJ Ventures, said that StyleCracker, with the help of a great learning algorithm technology, has maintained a low exchange and return rate, which is nearly 1/3rd of what ecommerce sites have.
Founded in 2013, StyleCracker has been combining data science with human expertise to personalise styling for its clients. The company says that its core value proposition revolves around deep personalisation at scale, unmatched convenience in user experience as well as supply-chain.
Bhatt, in November 2017, had picked up a small minority stake in StyleCracker for an undisclosed amount.
StyleCracker’s platform enables its customers to share their data and detailed preferences across several parameters regarding fashion and beauty.
The company claimed that at this time, StyleCracker’s proprietary technology platform comes into function and empowers its stylists to curate items of fashion, accessories and beauty tailored for each customer.
Archana Walavalkar, cofounder and creative director at StyleCracker, said that the company offers deep personalisation, which is nuanced and super emotional because that’s how fashion is consumed. “Our vision has always been to be the stylist to every Indian,” she added.
Fashion Startups Slaying In Style
According to a Google India research, the online fashion retail market in the country is expected to touch $35 Bn by 2020. Additionally, the study also said that every third shopping-related search from the country is fashion-related and the queries in the category are growing at 66% year-on-year.
While Indian ecommerce fashion industry is still ruled by the likes of Myntra, Jabong, Club Factory, the rise of private labels and unique business models to make designer fashion more accessible is attracting investors like never before.
Recently, fashion rental and styling platform, Stage3, on October 23, 2019, has raised $2 Mn in a Pre-Series A funding round led by Blume Ventures. The company had then said that it will utilise the funds to amplify the brand experience
In July, Mumbai-based fashion label House of Masaba had raised $1 Mn in a funding round led by Flipkart cofounder Binny Bansal, Purple Style Labs, Apoorva Patni of Patni Group, and Apurva Salarpuria of Salarpuria group.