Online fashion store FabAlley has reportedly secured $2 Million in its Series A round of funding led by India Quotient. Existing investors, including Indian Angel Network, also participated in the round.
The funding will be used to expand its offline reach and scale up its product offerings. It will also be used for marketing and brand management.
“Indian fashion e-commerce has a lot of curators and aggregators but very few Indian brands. FabAlley is already a leading brand and we believe that with this investment they would be able to scale up rapidly. The founding team has executed with sharp focus onthe right metrics and has shown great promise of building a premium online brand for women,”
said Madhukar Sinha, Partner, India Quotient.
On course towards becoming India’s foremost leading fast fashion brand, the company is growing year on year at 100%. This growth trajectory has led FabAlley to a profitable H1 2016-17.
Shivani Poddar, Co-founder FabAlley said,
“For the coming year, we will focus on an effective execution strategy to expand FabAlley’s geographical footprint and capitalize on the large opportunities in the online space ahead of us. We are on track to hit INR 100 Crore in GMV in 2017-18 and will continue to focus on building a profitable and sustainable business in the long term.”
The private label will be opening up more stores through tie-ups with Shoppers Stop, Pantaloons and Lifestyle and will also launch its own exclusive brand outlets over the next 18 months. Investors in the company, however, believe that despite an offline model that may be high on capital need, the FabAlley story has limited risk.
Tanvi Malik, co-founder, FabAlley said,
“We will be wrapping up (expansion of our Central stores) by Jan 2017. We will be expanding to categories such as lingerie and fitness wear. We will also expand our accessories portfolio to include bags, shoes, fashion jewellery as well as grow our two sub brands – Curve & Indya.”