It seems, fashion startups are in Fashion when it comes to the Indian startup industry. Despite the sad funding scenario of the industry currently, the startups catering to fashion are attracting lucrative investments and thriving like no other sector.
The first half of the year 2016 saw several Indian fashion startups raising funds. The month of May alone saw a number of fashion startups getting funded that included Coutloot, Shopwati, 6Degree, Blinge and Hoppingo. The investors list included various high-profile names such as IAN, Venture Catalysts, Ankit Nagori, ex-Flipkart CBO and others. Talking about the most talked about funding in the month of April, fashion discovery application Roposo with its 5 million in the second round of funding from Bertelsmann India Investments wins the case hands down.
Fashion startups in India are trying to make the world of online and offline retail meet through the means of innovative technology and market efficiency. According to studies, a majority of the current generation of Indian professionals, don’t necessarily go straight to their homes after work because they have an active social life. This is the very gap that most of these startups trying to cater.
According to Industry experts, the reason fashion startups are having a good funding time is the rapidly growing Rs 7,000 crore worth online fashion market, which is going to make up to a total of 35 percent in the total online retail market by the year 2020, a figure that will be almost double from the current figure of 18 percent.
Online fashion has become a high growth category in the current times with specialized fashion and youth fashion being two of the most important agents of its growth.
In earlier times, the Indian Fashion startup was the monopoly of online big weights like Flipkart, Amazon India, Jabong, Myntra and Koovs that were trying to make merry on the high-margin business of fashion. But, now, the scene has totally changed. The market is now seeing renewed action with coming of specialized players such as Reliance Industries’ Ajio, Arvind’s NNNow and Aditya BirlaGroup’s Abof, apart from various other small-scale fashion centric startups.
While new players are entering the scene, the older ones are trying their level best to push the envelope and stay in relevance. Recently, fashion e-tailer Limeroad, which originally began its journey as a womens wear only platform, opened its services to men also. A smart move indeed by the Tiger Global-backed fashion e-tail startup .
Considering the demand vertical, currently, the Indian retail lifestyle business is pegged at an approx $70 billion, of which only 1-2 percent is online. On the other hand, on the supply side, of the approximately 20 million estimated SMEs that are into manufacturing and retailing lifestyle products, less than one percent are currently online. Either way, there is huge scope for growth.
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