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.
The company will be utilising the funds to accelerate growth and expand its brand presence, both in 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 said in a press statement that 80% of the women’s apparel industry is owned by unbranded companies. Fashor believes that it is going to make use of the opportunity to create a disruption in the niche segment and emerge as one of the leading affordable fashion brands in the country.
According to Google India, the online fashion industry is going through a massive spur and is expected to touch $35Bn by 2020. As per Statista, a study revealed that the Indian women’s apparel market was projected to reach over INR 2.9 Tn by 2028. The growth will be fuelled by the working women population in India and is expected to grow in the coming years.
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.