Delhi-headquartered ecommerce company FableStreet, on Monday (December 9)announced that it has closed $2.95 Mn (INR 20 Cr) Series A funding round. The investment was led by Fireside Ventures, with the participation of Pradeep Parameswaran, president for Uber India and South Asia; Dilip Khandelwal, MD and head of Technology of Deutsche Bank and Suhail Sameer, CEO at RP-Sanjiv Goenka Group (FMCG).
Dipanjan Basu, partner and CFO at Fireside Ventures is also joining FableStreet as one of the board members. Prior to this round, in 2017, FableStreet had raised an undisclosed amount of seed funding from angel investors, including Harmeet Bajaj, Unilever vice president Pameela Pattabiraman, Fusiontech Ventures and other investors in the consumer, retail and technology sectors.
The company plans to use the funds towards market expansion including offline presence and adding product categories. FableStreet is also looking at hiring senior professionals, who will partner in growth and brand building.
Founded in 2016 by Ayushi Gudwani, FableStreet is a premium workwear brand, which prides itself on being product-oriented as well as R&D backed brand. The company claims that utilising premium quality fabrics and a three-body measurement algorithm, each garment is made-to-order and personally curated to fit the needs of every body type.
The company claims to have a significant customer base within India and internationally. FableStreet claims to have registered a growth of 50% Q-o-Q and claims to generate half of its revenues from repeat customers.
Dipanjan Basu, partner and CFO at Fireside Ventures said, “We have been impressed with strong brand followership and customer excitement for FableStreet. The brand has a sharp understanding of customer needs and has constantly evolved to provide quality and unique solutions to address them.”
With the fresh funding, FableStreet plans to enter offline retail with brand-owned stores in the coming months. The company said it will now adopt an omnichannel model.
It also plans to invest in AI and machine learning to build a customer recommendation engine, strengthen product development and set up a tech-enabled efficient supply chain.
The company competes with the likes of Marks & Spencer, Massimo Dutti, Zara, Ombré Lane among other workwear brands. In the larger fashion ecommerce industry, FableStreet competes with the likes of Myntra, Jabong etc.