Zivame, an online lingerie store has raised an undisclosed amount in its Series A funding from IDG Ventures and Indo-US Venture Partners. According to its CEO, the company intends to use the funds to increase its product catalog, improve customer experience, scale-upoperations and technology, and create additional consumer touch points.
Richa Kar, co-founder and CEO, Zivame said, “The funds will be utilized towards providing better customer experience and making more brands and products available for our customers. They will also be used for scaling our technology and operations and to create more consumer touch points.”
Launched in August 2011, zivame claims to have recorded 0.25 million visitors in February with 120% month-on-month growth during the first 6 months of its operations. Zivame is owned and operated by Actoserba Active Retail Pvt Ltd and offers a selection of over 200 lingerie styles including bridal lingerie, plus size lingerie, everyday wear, shapewear, lounge wear, nightwear, and swimwear from domestic and international brands such as Jockey, Triumph, Amante, Enamor, Bw!tch, Inaya, Hanes, Hollywood Fashion Secrets, Lovable at a price range ofRs 200 to Rs 3000.
T C Meenakshisundaram, MD, IDG Ventrures India Advisors said, “The lingerie category lends itself extremely well to ecommerce and this category has many successful companies globally. We believe that Zivame will be able to extend its lead significantly with this capital raise.”
Earlier this year in February, IDG Venture India along with Indo Partners have invested $14mn (Rs 68 crore) into e-commerce venture BrainBees Solutions, that runs baby-care centric online store firstcry.com. Manik Arora, the managing director of IDG Ventures had said that they like to invest in online retailers with the potential for profit margins of 20-40%. He also emphasizes to invest in only vertical portals that sell single categories can offer such margins.This is IDG Ventures fourth investment in last six months.
At present, IDG Ventures investment portfolio includes Apalya Technologies, Myntra Designs, iProf Learning, Sourcebits Technologies Pvt Ltd, Agile Financial and Valyoo Technologies Pvt Ltd, which runs e-commerce businesses lenskart.com, watchkart.com and bagskart.com.
Players in the lingerie segment
Indian e-tail industry has been witnessing a crave amongst entrepreneurs and celebrities to either invest or venture into lingerie space. Recently, Homeshop18.com added lingerie to its portfolio given the potential of the segment. Bollywood actress Neha Dhupia another name among the long list of film personalities who have turned to lingerie business (HerStyle.com), which offers lingerie, nightwear, accessories and fragrances from domestic and International brands.
Among other competitors, there are sites like StrapsAndStrings,ShopImagine, OyeGirl, Cilory and Bwitch with similar offerings. To compete and survive in this segment, Zivame plans to introduce premium international brands in the women’s apparel and accessories category in coming years.