Consumer-focused online retailer, Bewakoof has lately raised INR 80 crore fresh capital in the funding round. Bahrain-headquartered asset management firm, Investcorp has reportedly led the latest funding round in the online platform.
With this transaction, the investment company, Investcorp will hold nearly 14 per cent share in the online platform, Bewakoof along with participation in the board of directors, reported Inc42.
The Mumbai-headquartered direct-to-consumer firm will use funds to reinforce its technology, enhance consumer experience and employ new talent for the company.
Small Company turning to a Big Brand
Bewakoof was established by Siddharth Munot and Prabhkiran Singh on April 2012. The online company is immensely known for selling clothing as well as mobile phone cases. It directly targets customers eliminating the middlemen; it assets to have done more than INR 1.5 crore transactions per month.
The company’s first focus will be to further strengthen its platform and capture consumer data to improve their experience on the website by using machine learning, Co-founder of Bewakoof, Prabhkiran Singh, co-founder, said in an interview to Inc42.
“We will be investing in our technology back-end, along with category expansion,” Singh added.
Over the period, the company has transitioned into an INR 100 crore entity from a tee-shirt selling firm. It further sells various types of apparel viz. Sweaters, notebook, footwear, and hoodies etcetera reported Entracker.
Primarily, a large proportion of Bewakoof’s customers are millennials in the age bracket (16-34 years). The company targets on metropolitan cities and tier-II cities viz. Kota, Pune, and Bengaluru; these areas mainly encompass young Indian demographic.
The company had received its initial investment sum of INR 30,000. Later, it had received seed funding six months after its incorporation. Furthermore, it has raised angel funds from Rohit Bansal, Nikhil Vora, Former MD of IDFC Securities, and Kunal Bahl in 2015.
The company’s website asserts that it has sold more than 1 crore products and more than 60 lakh application downloads to date.
As social media has become an imminent part of millennials today, small brands are immensely employing it to promote its products. Thus, homegrown brands are getting recognition and gradually turning into big brands. Some of the small renowned brands are Chumbak, House of Masaba and Happily Unmarried connect with the Indian millennials.
According to the data management firm, Technavio the Indian online fashion market is calibrated to reach $12-$14 billion by 2020. The Indian market is anticipated to increase at a CAGR of nearly 63 per cent by 2020.