wordpress blog stats
Connect with us

Hi, what are you looking for?

,

99Labels Raises $3.5M From Info Edge; To Source From International Brands

You’re reading it here first: Info Edge has invested Rs 16 crore ($3.5 million) in 99Labels.com, an invitation-only boutique shopping site founded by Ishita Swarup and Anchal Jain. 99Labels competes with Fashion and You and Exclusively.in, among others. Speaking with MediaNama, Info Edge CFO Ambareesh Raghuvanshi said that the Rs 16 crore amount is a mix of primary and secondary investment, since they are buying out some angel investors, and 80% of the total amount goes into the company. Some angels are staying on.

Raghuvanshi believes that the e-commerce category in India is taking off – this is their second such investment after investing $2 million in group buying site MyDala. “This business, more than any other business, depends on the kind of goods. if you have high quality goods which are attractive, they will sell. The differentiation will be ability to source good products.”

That’s exactly where much of the money will go towards – 99Label CEO Ishita Swarup told MediaNama that they’re “putting international brand sourcing into high gear”, and a large part of the money will be invested in that initiative, as a means of differentiating from competitors in India, since every one sources from the same labels. She says that 99Labels has representatives in New York and Paris, and apart from Luis Vuitton, everyone gets discounted internationally. “The entire system of liquidating stock is not well set in India, and internationally, it’s a much more mature market. We’re in talks already, and identifying brands.”

Targets and Challenges

Swarup says that 99Labels has a member base of around half a million, and, depending upon the month, “we
are hosting 140-150 (sales) events a month, doing 600-700 sales a day.” The company is now looking to double that in the next six months. But, in a market that growing-as-if-on-steriods, isn’t that rather tame? Swarup believes it is an aggressive target – “The challenge is not to ensure is getting the order, but in the delivery. We’ll have to continue to strengthening our back end. Increasing front end sales is a function of marketing.” Note that 99Labels takes title of goods, creating logistics and infrastructure, giving it control over the customer experience.

Swarup says that the current challenge is in sourcing from certain brands. “We say 20 days of delivery, but we deliver earlier in a large percentage. Reaching small towns is a challenge, but we don’t find cash-on-delivery an issue.” The company charges charge extra for delivering, and says it is normally out-of-pocket when it comes to distant towns. “If you order across 3 sale events, there are times when I haven’t gotten one of the products into my warehouse within the stipulated time – so I have to end up picking up the cost of delivering one of the two times, even though I’m charging for only once.” Pilferage during delivery, she says, has not been an issue. “All metros are huge for us, but if you take away the top 6-7, the next that you drop to tier 3, tier 4 towns. North is a huge focus.”

Advertisement. Scroll to continue reading.

The company has a return policy, so reverse logistics is also tricky; the return percentage is low, she hastens to add.

Going mobile

99Labels plans to go mobile this year, though Swarup said she’s not sure if they will do a full fledged m-commerce model.

Why Info Edge?

It was reported that the company was in talks with Canaan Partners for an investment. Swarup says that they “talked to many potential investors, but the decision was go with just money or with ‘strategic plus money’. We thought that strategic partners would help.” Did the fact that Multi-Brand retail outlets in India cannot raise venture capital funding make a difference? “Honestly, there are ways to go around it, but they are still grey ares. That was a happy co-incidence of going with Info Edge.”

Advertisement. Scroll to continue reading.
Written By

Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.

News

In this excerpt from the book, the authors focus on personal data and autocracies. One in particular – Russia.  Autocracies always prioritize information control...

News

By Jai Vipra, Senior Resident Fellow at Vidhi Centre for Legal Policy The use of new technology, including facial recognition technology (FRT) by police...

News

By Stella Joseph, Prakhil Mishra, and Yash Desai The Government of India circulated proposed amendments to the Consumer Protection (E-Commerce) Rules, 2020 (“E-Commerce Rules”) which...

News

By Rahul Rai and Shruti Aji Murali A little less than a year since their release, the Consumer Protection (E-commerce) Rules, 2020 is being amended....

You May Also Like

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ