Fashalot, fashion and store discovery mobile app, gets pre-Series A funding from YourNest
Using mobiles, Fashalot connects shoppers to brick and mortar retail stores in their neighborhood.
Fashalot, launched in April 2015 as India’s first O2O (Online to Offline) location-based fashion store discovery platform, has raised capital in a pre-Series A round of funding led by YourNest Angel Fund and Rajul Garg, a marquee investor.
The company will invest the funds in product development, hiring top talent and accelerating its business growth month on month. Currently operational in Delhi-NCR and Bengaluru, the brand aims to aggressively ramp up its operations in new cities by the end of this year.
E-commerce is still picking up as a category and there is a lot of activity that is going offline that will have to go online so as not to be left out in the profitability number game. There is a lot of hunger and demand for enablers who can connect offline players with consumers online, says Girish Shivani, nominee Director from YourNest angel fund, talking about funding Fashalot.
How does it work
The fashion retail market in India stands at more than $100 billion and there are over 12 million brick-and- mortar stores in the country. The most prominent need of retailers has always been to drive footfalls to their stores. With its horizontal platform, Fashalot connects shoppers with offline stores and helps shoppers discover fashion stores, latest collections, in-store offers and get guaranteed cash back each time they shop. For its partner brick-and-mortar outlets, it acts as a powerful marketing tool to increase footfalls for partner outlets significantly and give shoppers new reasons to do so.
Using mobiles, Fashalot connects shoppers to brick and mortar retail stores in their neighborhood. It helps digital users to reconnect with offline stores as well as enables such stores to increase footfalls with an Omni-channel approach.
Currently operational in Delhi NCR and Bengaluru it plans to expand to Mumbai, Pune, Chennai, Jaipur and Chandigarh in the first phase of expansion. With over 2000 live stores and 60,000+ downloads till date, Fashalot focuses on driving more shoppers to offline stores by redefining the way they interact through its unique marketing platform, said Amit Koshal, Founder and CEO. It aims to touch $1 billion in revenues by 2018, Koshal added.
“The company has a growth rate of over 100 percent month-on-month. Several regional, national and international brands that have partnered with us owe almost 10 percent of their monthly revenue to our disruptive mobile technology that is built to drive footfalls for brick-and-mortar fashion retailers. We are on track to be the largest O2O location-based fashion discovery network in India and the capital raised will contribute significantly for us to achieve this goal,” said Koshal.
“Fashalot has a founding team with cross-functional skillsets and is delighting shoppers with its compelling product. The team has demonstrated amazing week-on-week growth across key metrics like customer engagement, traction and retention, and large repeatable transaction value. The opportunity has tremendous potential and is already making a positive impact to fast growing retail sector in the country,” Shivani added.
SOAR will invest between $250,000 and $1 mn in funding each startup that is selected, it added.
There are some that are still called start-ups though they have been around for over three years and are doing well. Can the term start-up be used for them, for instance?
For capital to be made accessible to venture capital, it has to come from insurance companies, provident funds, pension funds or charitable institutions.