(by Brindaalakshmi K & Vikas SN)
Update: FashionAndYou has officially confirmed that it has raised $10 million from new and existing investors. Sequoia Capital, Smile Group, Norwest Venture Partners, Intel Capital and Nokia Growth Partners have apparently participated in this round.
The company will be using this investment to strengthen its technology, brand building and acquire more customers. FashionAndYou claims that Women shoppers contribute to 70% of their sales.
Earlier (June 5): Smile group’s fashion e-commerce venture FashionAndYou has raised an undisclosed amount in Series D funding from Chinese discount retailer Vipshop and existing investors Norwest Venture Partners and Intel Capital, reports TechCircle citing sources. Norwest Venture Partners and Intel Capital declined to comment on this to the publication.
While we are yet to receive a response from the company, our sources have confirmed this investment. There is currently no word on where the company plans to use the investment raised.
Prior to this, the company has raised $40 million from Norwest Venture Partners and Intel Capital, Sequoia Capital India and Nokia Growth Partners in November 2011. It had also raised around $8 million from Sequoia Capital India in December 2010 and an undisclosed amount of investment from European & Indian private investors at launch in November 2009.
FashionAndYou offers time-limited deals and discounts on products across various categories like apparel, footwear, accessories, fragrances, watches, cosmetics, home décor & lifestyle products among others. It focuses on international, hi-fashion, lifestyle brands & designer labels and claims to offer products from more than 500 brands at discounts of up to 80%.
Once a significant player in the fashion segment, FashionAndYou was later overtaken by its competitors like Myntra and Rocket Internet-backed Jabong. We are curious to see whether this investment will help the company to get back into the game.
It’s also worth noting that fashion has now become the next big frontier for e-commerce companies. Last month, e-commerce major Flipkart had acquired Myntra and had stated plans of investing upward of $100M in Myntra in near future. Myntra CEO Mukesh Bansal would also be heading the fashion business for Flipkart.
Snapdeal is also focusing on fashion & lifestyle product sales while Amazon India has entered the apparel segment by launching a women’s ethnic wear section in April this year and a men’s apparel section earlier this month. Jabong had also recently closed a “multi-hundred million dollar” investment from a series of investors including UK’s development finance institution CDC Group plc. The company had reported 1.95 million orders and 0.79 million transacting customers for the quarter ended March 31, 2014.