Online Retailer Store Fashionandyou Secures $10M Funding.
Online discount retailer Fashionandyou.com has recently manage to raise a total of $10 million during its fourth round of funding led by currently existing investors and with at least one new investor on board the company stated.
Incubated by Smile Group, the firm is backed b y Sequoia Capital, Norwest Venture Partners, Intel Capital and Nokia Growth Partners. During 2011, Fashionandyou.com had raised over $40 million.
Fashionandyou has planed to utilize this recently gain funding to open more distribution centres, brand developing and enhancing their technology for expansion, chief executive Aasheesh Mediratta stated.
The company, which trimmed some of its operation during the previous year in order to stay in business, is currently planning to open two new distribution centers within Surat and Bangalore to ramp up its delivery network. It already has one center in Gurgaon on the outskirts of Delhi.
“Surat should be live by today or tomorrow and Bangalore is expected to be operational in the next couple of months,” said Mediratta.
The company is also looking towards investing in developing its brand by investing money for a one-to-one marking through pamphlets, promotion and direct mail campaigns, forging alliances with brands and may also look towards spreading into television advertising as well.
While television advertisement may not be highly on priority for Mediratta, he is not declining any launch for a TV campaign. “We got a television ad made last year but could not go live with it due to operational challenges. We might reconsider that sometime,” he added.
Similar to that of other online retailers based in the country, Fasionandyou.com are also betting huge on mobile devices and shall be launching its mobile application sometime during September.
To cement themselves, a successful business model beyond discount retailing online has not caught up in the country. during the previous year site such as Fashionandyou.com and 99 labers were seen scailing down operation in order to maintain its business.