Noida-headquartered women-centric high street fashion brand FabAlley has raised Rs 5 crore in debt funding from Trifecta Capital.
The online fashion startup plans to use this funding primarily to swell its offline growth. Besides, the proceeds will also be used to expand its geography in the top metros and Tier-I cities, reports ET.
In October 2016, FabAlley had raised Rs 13 crore in a Series-A round led by Mumbai-based India Quotient. The round also saw participation from existing investors including IAN, social entrepreneur Ranjan Sharma and a clutch of angel investors.
“We have a clearly identified use case for debt as we move towards a more aggressive omni-channel growth strategy. Offline expansion is a more capital intensive proposition and funding these capex requirements is best done through debt which is lower cost capital as compared to equity,” said Shivani Poddar, co-founder, FabAlley.
Started in 2012 by Tanvi Malik and Poddar, FabAlley is an online fashion brand which sells across categories such as apparel, footwear, accessories for women. In 2016, the company had launched two sub brands and also partnered with Future Group’s Central malls to expand into offline markets.
FabAlley sells through its own website, online marketplaces and through its 3 retail stores and service over 2,000 orders a day. The firm aims to have 25 stores in the next 12 months and will be deploying 10-12 crore towards the expansion.
The company claims to register Rs 100 crore in Gross Merchandise Value in FY18, exhibiting a 100% growth over the previous financial year. It also said it turned EBITDA positive in the last 3 quarters in FY18 and is expected to sustain an EBITDA positive rate of over 5% in the next 12 months.
On Thursday, Fashion startup 6Degree has raised $4,00,000 in a pre-Series A round of funding led by Indian Angel Network (IAN) and TAN Advisors.