Mumbai based ethnic products etailer Craftsvilla has raised $34 million (Rs 220 Cr) in Series C round funding led by Sequoia Capital and Lightspeed Venture Partners. Nexus Venture Partners, Global Founders Capital and Apoletto also participated in the funding round, taking company’s value to $200 million post investment.
The company was founded in 2011 by Monica and Manoj Gupta. The website sells ethnic, handmade products and handicrafts, and claims to have a reach of million customers a day through its mobile app and website.
The company run by Kribha Handicrafts had previously raised $18 million led by Sequoia Capital with participation from Nexus Venture Partners, Global Founders Capital and Lightspeed ventures. Craftsvilla also plans to use the capital in marketing and expanding their product internationally (Malaysia & Indonesia at this point).
Profitability, Competition and Growth
Manoj indicated that they earn 20% of the total transaction. The company is also planning to launch private labels which just might boost the profit margin and create a ‘Craftsvilla’ exclusive image.
Craftsvilla faces competition from Indian Roots and Jaypore in the Indian market.Indian Roots (A NDTV Venture) raised $5 million in Series B funding ( (KJS Group) bringing the post valuation of the company to $85 million in May. While India Craft and Jaipore are going at the same pace.
Craftsvilla is aiming for a valuation of billion dollars and a GMV of $500 Million in next one year, the company also plans to go public in next 12-18 months, as indicated by one of the founders of the company.