Flyrobe, a startup that rents out premium/luxury dresses and accessories has raised $5.3 million series A round of funding led by IDG Ventures with participation from existing investors including Sequoia India, and new investor GREE Ventures.
With the fresh round of funding the company plans to scale its operations, with a growth target of 4-5x by March 2017. It will also source new materials from more designers and launch in 5 more cities. Flyrobe is currently live in Mumbai and Delhi and will launch in Hyderabad and Bangalore in September.
In July, Flyrobe raised $1.7 million in seed funding led by Sequoia India, with participation from Rohit Bansal and Kunal Bahl, Sandeep Tandon and Kunal Shah. This brings its total fund raise to $7 million.
The company offers a curated collection of Indian and Western apparel and accessories, and sources its inventory from designers such as Ritu Kumar, Masaba Gupta, Quirk Box, Outhouse, etc. and offers it on rent for a supposed fraction of the original cost. The company claims that almost 50% of its customers are repeat users. It also claims to have partnered with laundry care company 5asec to keep a check on hygiene of the dresses.
Although apparel and fashion rental could mean risky and unstable business, many players have recently entered this segment and raised significant amount of funds.
– In May, online apparel rental startup Klozee shut down operations after raising funding in August last year.
– Mumbai-based Blinge is an online fashion rental platform that currently operates through a marketplace model. It claims to have a community of over 20 designers on its platform with over 1,000 customers. The company raised an undisclosed amount in its first round of in May.
– Envoged is another fashion re-commerce startup that founded in March 2015 this year. It had raised an undisclosed amount in seed funding in September last year and an undisclosed amount from the Indian Express Group in November 2015.
– Stage 3 on the other hand offers fashion products and apparels on rent, while also providing customized fashion products for its customers through the help of a community of designers, stylists, etc. The company raised an undisclosed amount in angel funding from a multiple investors in December 2015.
– Zapyle is another startup that allows users to buy and sell luxury wear, and other premium apparels. It takes a 25% commission cut on clothes sold via its platform and had raised $1 million in seed funding in September 2015.