Styletag.com raises $7.6M from Embassy Group's Virwani
Styletag.com, a flash sale venture for curated designer wear, has raised $7.6 million (Rs 50 crore) in angel funding from Jitu Virwani, chairman and managing director of real estate developer Embassy Group.
The company will use the money raised to expand its range of private labels, acquire more designer brands and increase headcount, it said in a press statement.
"I find the startup e-commerce space a very exciting one and it is an extremely dynamic market. Through similar investments, I want to encourage players in the startup space," Virwani said.
Founded in 2012, Styletag.com (run by Intrepid Online Retail Pvt Ltd), was started by Sanjay and Yashodhara Shroff along with Vivek SP (former Infosys executive), technology blogger Prashanth HN and web designer Soujanya Sreenath. In 1991, Yashodhara and Sanjay Shroff had started ffolio, South India's first multi-designer luxury store. With Styletag.com, the couple gravitated towards the burgeoning online shopping space.
Styletag.com hosts flash sales for curated styles, offering upto 70 per cent discounts on designer products. It curates designs from established designers and new ones. Its product portfolio consists of apparel, bags, shoes, home dÃ©cor, toiletries and accessories among others, the company said.
By the current year-end, the startup aims to clock gross merchandise value (GMV) of upto Rs 70 crore, it said.
Styletag.com would compete with the likes of Limeroad, FashionAndYou and Zovi among others. Myntra, Jabong, Amazon and Exclusively (acquired by Snapdeal) could also be been as Styletag.com's competitors.
In October, the Aditya Birla Group launched a fashion portal to sell apparel, footwear and accessories, highlighting the growing importance of e-commerce for brick-to-mortar retailers. The shopping site abof.com will sell its own merchandise as well as products from other brands. A recent report by search giant Google had suggested that India's online fashion industry will touch $35 billion by 2020.
Virwani has been at the helm of the Bangalore-based Embassy Group, a residential and commercial real estate developer, since 1993. Recently, the Embassy Group ventured into the warehousing and logistics businesses. It sewed a joint venture with global private equity firm Warburg Pincus to build industrial parks and warehouses in the country.