SummerLabel raises Rs1 crore from 7 HNIs
Fashion discovery mobile application SummerLabel will invest the funds for team expansion, technology and product development
New Delhi: Fashion discovery mobile application SummerLabel has raised Rs1 crore from a group of seven high networth individuals, said the company on Monday.
The Gurgaon-based company will invest the funds for team expansion, technology and product development.
Owned and operated by Abrax Retail Pvt. Ltd, SummerLabel was founded by two engineers from Chandigarh, Apaksh Gupta and Vanya Mishra, Miss India pageant winner 2012.
Launched in February, the mobile app aggregates online and offline (brick and mortar) private label stores to get discovered by a user, while the company is also developing marketing software for such brands.
The company targets to have up to 1,500 of them from metro cities listed on SummerLabel by December 2017.
“While there are other firms in the discovery segment, they are more focused towards, style or help in shopping the look (purchasing a particular product and then discover a brand to buy it from); SummerLabel’s objective is to build brands out of the lesser known stores,” said Gupta in an interview.
“On SummerLabel, users can find stores near them, see pictures of what clothes they are selling, range of price they are selling at, read ratings and reviews given by other customers. On the other hand, we are a technology company that gives these fashion stores an online management tool that will help in marketing, building loyalty programs, among other features,” he added.
The company competes with fashion start-ups such as Tiger Global-backed Roposo that has raised $21 million since its inception in 2014 and Wooplr that announced $8 million in a series B round of funding led by Sistema Asia Fund on 9 February.
Most recently, Kolkata-based fashion discovery start-up SeenIt announced its undisclosed pre-series A funding from Calcutta Angel Network and Augment Ventures on 28 February.
SummerLabel monetizes its service by selling software as a service for marketing and brand-building to the private labels. One such software optimizes influencer-based marketing: a kind of social media marketing where brands pay users with more than 5,000 followers to endorse the brand on Instagram, Facebook or other social networks.
SummerLabel’s tool allows the brand to find the “apt and most relevant influencer and track the extend of brand engagement. The brands, otherwise, end up choosing someone based on gut and limited information, and even fail to measure the impact of such marketing,” said Gupta.
He explained that while these influencers can be paid in the range of Rs10,000 to Rs3 lakh a month; an average influencer with 50,000 to 60,000 followers generate 3,000-4,000 impressions on a post measured by number of likes, share and comments. Through its tool, SummerLabel targets to increase these impressions by 50% given an amount of influencer marketing investment.
The company plans to roll out software for loyalty programme and point of sale data analytics, targeting revenue of Rs25-30 lakh by December 2017.
Selling such brand-centric softwares on subscription is unlike Wooplr or SeenIt, which majorly earn revenues from brand marketing campaigns that run on the platforms itself.