Bangalore-based app only jewellery startup Melorra has raised $5 million from a VC firm Lightbox Ventures to hire new talent, build its brand and enhance its technology platform. The app is currently available for iOS users.
Melorra is owned and operated by August Jewellery Pvt. Ltd and is expected to launch its Android app by the end of this month. The startup is in stealth mode and expected to roll out its online portal by March. Founded by Saroja Yeramilli and R. Krishnakumar, the company is targeting women in the age group of 18-40 and will offer diamond, gold, colored stone and fine jewellery. It will provide jewellery with an average selling price of Rs.16,000.
Currently, the startup has about 40 employees and an in-house design team based in India, the US and the UK, however production takes place only in India. It works with 10 jewellery manufactures across the country. The firm has two warehouses in Jaipur and Mumbai and tied up with Sequel Logistics for delivering its products.
Indian domestic gems and jewellery industry had a market size of Rs 251,000 crore ($ 40.45 billion) in 2013, with the potential to grow to Rs 500,000–530,000 crore ($ 80.59-85.43 billion) by 2018, according to a study. Other players which are operating in the space include CaratLane which is backed by Tigel Global, and Bluestone has been backed by Accel Partners and Dragoneer Investment Group, among others.
This is Lightbox’s first seed investment in any startup. The firm has invested in companies such as Faasos, Droom, Embibe and Furlenco in later stage rounds.