Velvetcase raises $1.5-2 million from Uniqorn Ventures Fund and others2 min read . Updated: 28 Jun 2016, 09:36 PM IST
Velvetcase aims to use the funds for marketing initiatives, strengthening technology and developing solutions that are seller-centric
Mumbai: Bodhi Brands Pvt. Ltd , the company that owns and operates online jewellery site Velvetcase.com, has raised $1.5-2 million in a second round of funding. The round was led Uniqorn Ventures Fund with participation from a group of angel investors like T.V. Mohandas Pai and S. Somasegar through Letsventure (a crowdsourcing platform). Existing investor The Chennai Angels also participated in the round.
The company raised ₹ 6 crore in 2014.
Mumbai-based Bodhi Brands, founded in 2012 by Kapil Hetamsaria and Runit Shah, aims to use the funds for marketing initiatives, strengthening technology and developing solutions that are seller-centric.
“We are looking to acquire or develop technology that will help sellers set up their online stores, track and manage inventory among other things. We may look at other mediums such as print and television advertising as a means to build the brand," said Hetamsaria over the phone.
Velvetcase, which started out by selling customised and designer jewellery, moved to a marketplace model in July last year. Since then, it has got on board 300 sellers across 28 cities.
“We are looking to bring on board 1,000 more sellers over the next six months," added Hetamsaria.
The company is also planning to have an offline presence by setting up independent kiosks or collaborating with partner brands in 8-10 cities. Exports to 5-7 countries constitute 10% of total sales. All of the jewellery sold online is certified by third-party laboratories.
The jewellery market in India is expected to grow at a compound annual growth rate (CAGR) of 15.95% over 2014-2019, according to India Brand Equity Foundation (IBEF), which provides industry trends and data.
Other companies in the sector include Bluestone Jewellery and Lifestyle Pvt. Ltd. It raised $10 million last year and is looking to raise ₹ 200 crore more, according to a June report in Mint.
Melorra (August Jewellery Pvt. Ltd) raised $5 million in its first round from Lightbox Ventures in January.
There is also a consolidation trend in the sector. Titan Co. Ltd, the maker of Tanishq jewellery, is looking to acquire a majority stake in Carat Lane Trading Pvt. Ltd which raised $31 million in a round led by Tiger Global last January, according to a Mint report in May.
Velvetcase offers over 100,000 designs. The average value of an order is ₹ 30,000, with a repeat purchase rate of 32-38%. The company charges sellers a commission of 7-35% per sale.
“We are looking to clock revenues worth ₹ 100 crore in the current financial year," said Hetamsaria.