99labels.com, a fashion retail portal, is on course to raise early stage funding. Sources close to the development told VCCircle, the firm is in advanced stages of talks with early stage investor Canaan Partners.
Sources said, the venture capital firm has already signed a term sheet with the company. "Nothing is confirmed as of now," a 99labels.com spokesperson told VCCircle. When contacted, Canaan Partners managing director Alok Mittal said, "We don't comment on market speculation and rumours."
Partnering national and international brands, 99labels presents event-based online sales for a limited time period giving members an opportunity to buy fashion-wear, accessories, lifestyle products, sportswear and gear, electronics and even furniture at members-only prices that are up to 70% off label prices.
There have been a gamut of online fashion retail websites that have been launched in India in the last couple of years. Both Indian and international luxury brands can be bought at throwaway prices on these sites. Fashionandyou, 99labels, Brandmile, DesiCouture and Privatesales are some names that are popular among fashion-conscious buyers.
Investment action in the e-commerce space is heating up with several deals in the recent past. Fashionandyou.com raised $8 million from Sequoia Capital India, Exclusively.in, a flash sale website offering high-end products in areas like Indian fashion and home decor, raised $2.8 million from Accel Partners and Helion Venture Partners while Jasper Innovative Marketing Solutions, which owns the group buying portal Snapdeal.com, raised $12 million in a series B financing from Nexus Venture Partners and existing investor IndoUS Venture Partners among others.
According to analysts, the next decade will bring massive growth in the Internet sector in India supported by highly favourable demographics, growing Internet-broadband penetration, launch of one of the world's best 3G networks, growing middle class-income levels, noticeable pick-up in tech-gadget and mobile culture, and surge in home-grown Internet start-ups.