Zivame raises Rs250 crore in series C funding
With 60% of the traffic coming through mobile devices, the lingerie store also announced the launch of its mobile app
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Bengaluru: Online lingerie store Zivame, owned by Actoserba Active Wholesale Pvt. Ltd, has raised Rs.250 crore in a series C funding round from Zodius Technology Fund and Khazanah Nasional Bhd, the investment holding arm of the government of Malaysia. Existing investors Unilazer Ventures, IDG Ventures India and Kalaari Capital also participated in the round, the company said in a statement on Thursday.
With 60% of the traffic coming through mobile devices, the company also announced the launch of its mobile app.
The company, which was founded by former SAP executive Richa Kar in 2011, had earlier raised about $9 million in two rounds, the last being a $6 million round in December 2013.
Fresh funds will be deployed in acquiring customers, expanding product offerings and increasing consumer touch points.
“The Indian woman wants to look and feel good and has the economic independence to splurge on lingerie she never had access to before. Zivame is the catalyst of this change,” said Kar.
About one-third of the company’s revenues come from tier II and III cities. The company claims to showcase more than 5,000 styles in 100 sizes from 50 brands.
Zivame started out as an aggregator of brands including Enamor, Amante, Jockey, among others, but launched private labels two years ago in an attempt to boost margins. At present, private labels such as Penny and Cou Cou account for about 60% of the sales for Zivame.
The company will also invest in boosting its technology infrastructure and recently announced a data sciences lab.
Zivame competes with Pretty Secrets and Laceandme, among others. However, Zivame’s latest round is the biggest funding round secured by an Indian lingerie store. Pretty Secrets had raised $2 million in a Series A funding round from Orios Venture Partners, Indian Angel Network and Harvard Business School Alumni Angels.
Incidentally, online lingerie store OyeGirl shut shop last year.
Investors are, however, bullish on the category, which is estimated to be a $3 billion market, with less than 2% of the market being online.
“With Khazanah coming on board, Zivame’s funding needs are expected to be fully secure for the foreseeable future, and the focus will be on supporting them in building their institutional capabilities in the coming years,” said Chinta Bhagat, executive director, investments at Khazanah India Advisors Pvt. Ltd.