Gurgaon-based online retailer, Fashionandyou has officially confirmed that it has raised USD 10 million in series D round from new and existing investors. The firm, was incubated by Smile Group and is backed by Sequoia Capital, Nokia Growth Partners, Intel Partners and Norwest Venture Partners.
It aims to utilize the raised funds for technology expansion, brand-building as well as open new distribution centres. Earlier, the company has received USD 48 million from the existing investors. Till date, including this round, the firm has secured a total funding of USD 58 million.
Medianama says: FashionAndYou offers time-limited deals and discounts on products across various categories like apparel, footwear, accessories, fragrances, watches, cosmetics, home décor & lifestyle products among others. It focuses on international, hi-fashion, lifestyle brands & designer labels and claims to offer products from more than 500 brands at discounts of up to 80%.
Once a significant player in the fashion segment, FashionAndYou was later overtaken by its competitors like Myntra and Rocket Internet-backed Jabong. We are curious to see whether this investment will help the company to get back into the game.
LiveMint says: The company, which trimmed operations last year to stay in business, now plans to open two new distribution centres in Surat and Bangalore to ramp up its delivery network. It has one centre in Gurgaon on the outskirts of Delhi.
“Surat should be live by today or tomorrow and Bangalore is expected to be operational in the next couple of months,” said chief executive Mediratta.
Fashionandyou.com is looking to tweak its business model by adding some categories that will be available 24×7 on the website to cushion sales. However, this will only be 20% of its business, while 80% will still come from flash sales, according to the company.
More from Press release: FashionAndYou, a leader in flash retail model in India, retains its DNA of freshness and value and offers 15 new daily sales wherein one can find marquee brands at attractive price points. The company recently announced that it has crossed 5.5 million members, thus securing its position as the undisputed market leader within this space.
Presently, Women shoppers contribute to 70% of sales at Fashionandyou.com and this figure is expected to burgeon in the coming times. Industry estimates suggests that women will catapult the Indian online shopping industry to a growth gradient of 6 times over the next 3 years. Fashionandyou is committed to capitalise on this growth matrix considering that the estimated growth for the online fashion and lifestyle industry is pegged at $15 Bn by 2020. The rising trend of impulse purchases is likely to favour the company’s flash retail model and merchandising strength, thus helping it in capturing a sizeable share of the pie.
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