Vellvette.com, a Mumbai-based lifestyle e-commerce startup from, has secured a funding of $500k from early stage investor India Quotient and angel investors Nitin Agarwal and Siddharth Ladsariya, reports TechCircle.
The report states that the investment will be used to build a technology platform for its customers. We’ve contacted the company for an interaction and will update the post when we hear from them.
Subscription-based Cosmetics Service: Launched in March 2012 by Vineeta Singh and Kasuhik Mukherjee, Vellvette.com sells cosmetics online on a subscription based model. Customers can pay Rs 399 and get a Vellvette Box containing 3 samples from any 3 brands delivered home and after using the products, customers can purchase the full sized bottles from Velvette.com.
When we checked, the website seems to offer products from around 18 brands including Body Shop, Elizabeth Arden, OPI, Lush, Shiseido, Caudalie and other brands.
Although the cosmetics business is a high margin business, the subscription model could go wrong if not handled well since there is no sure guarantee of all subscribers turning into purchasers for such high priced products.
Besides this cosmetics, the site also features an in-house beauty magazine, however we noticed that the reviews on the website haven’t been updated since September 2012.
Mumbai based Purplle.com also offers cosmetics for purchase and when we checked, we noticed that Purplle.com has a extensive catalogue of products. However its worth noting that Purplle is a regular e-commerce store, unlike Vellvette which has taken the subscription route. Besides that, e-commerce ventures like Jabong, Healthkart, Homeshop18 also offers cosmetics.
India Quotient’s Investments
Vellvette.com is not India Quotient’s first lifestyle investment. They have also invested in Belita which provides beauty and spa services to women in their homes. We therefore wonder if this was a strategic investment made by India Quotient and will they be pushing for Vellvette’s products through Belita’s customers or vice versa? There already seems to be an overlap of brands available for sale at Velvette and for service at Belita.
India Quotient’s other portfolio companies include Engrave, Red Quanta, IIMJobs.com and The App Kiosk.