Zapyle.com, a platform that enables users to buy and sell pre-owned luxury wear, has raised $1 million in seed funding from a group of real estate firms and investment companies in Bangalore.
The raised capital would be used to bolster its team, introduce new features on the mobile app and acquire customers, as confirmed by the startup’s Founder and CEO, Rashi Menda. Zapyle was founded in May 2015 by Menda, an alumna of University of Minnesota.
The startup’s target audience is the internet-savvy women in the age group of 18-30.
Its mobile app allows users to upload images of pre-owned wearables in an ‘Instagram-like’ fashion. It has a predefined set of about 1,500 domestic and international brands that can be sold on the platform. Prior to permitting users to enlist their items on Zapyle, the company undertakes background checks and quality assurance activities, reports VCCircle.
Its monetization relies on the 25% commission it takes on the sale value.
One of Zapyle’s potential competitors is Mumbai-based Armoire Lifestyle Pvt Ltd, which runs online platform for women’s luxury wear Envoged.com. It allows owners of luxury goods like handbags, footwear and accessories to sell them on the platform. Envoged raised an undisclosed amount in seed funding from Nijhawan Group’s Ankush Nijhawan, Mediology Software director Manish Dhingra and AMG Investment’s Gaurav Bhatnagar last month.
Similarly, Elanic, Stylish Play, Share Wardrobe and Etashee are among the other prominent players performing in the same avenue. Many of these ventures are trying to emulate the success of international players such as Poshmark, Secoo and Glambot. Their business models rely on people’s growing desire of owning premium brands.