Leading online fashion portal, Fashion&You is likely to raise Rs 300Crs in a fresh round of funding led by Morgan Creek...
One of India's oldest fashion & lifestyle e-commerce portals Fashion and You is close to raising $50 million, or Rs 300 crore, led by US-based investment fund Morgan Creek Capital, sources close to the matter told TOI. The online retailer is trying to script a second coming for itself in a hyper-competitive market.
The new financing round comes on the back of the e-tailer raising $10 million from Vip.com, China's largest flash sale retailer listed on the NYSE, where Morgan Creek is an investor. Fashion and You's existing investors Sequoia Capital and Norwest Venture Partners, among others, are expected to participate in the latest round, sources said.
When contacted by TOI, Harish Bahl, founder of Smile Group, which runs Fashion and You besides Freecultr and online fashion jewellery site Juvalia & You, said, "Yes, we are closing a new, large round but it would be premature at this point to tell you who the investors are."
An email sent to Morgan Creek's Anand Prasanna did not elicit a response till the time of going to press. The Mark Yusko-led $4-billion Morgan Creek Capital has been bullish on China with investments like Alibaba, Tuniu Corporation and Dianping, among others.
Based on the flash sale model, offering deep discounts that typically have time limits, the Gurgaon-based Fashion and You started off as an invitation-only site selling high-end brands back in 2010. It scooped up almost $50 million of venture funding in a short period of time but could not benefit from its first mover advantage as Myntra and Jabong scaled up rapidly.
With a failed acquisition in Urbantouch, a beauty portal, and well-funded competitors doubling down in the fashion e-commerce market, it pivoted (changed business model) in 2013 and brought in a new management after the departure of its co-founder & CEO Pearl Uppal.
Bahl said the site's earlier avatar was difficult to sustain essentially because of supply-side constraints as not many high-end, luxury brands were available in the market to sell. "I think we were a little ahead of time but since we restarted in 2013 with a changed model and a new management, we've been growing fast at around 20% month-on-month," he said. The e-tailer is expected to be selling goods worth $5-6 million monthly. However, Bahl did not confirm the number.
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