Noida-based lingerie brand Clovia has raised ₹70 crores ($10 million) in a fresh funding round from Singapore-based private equity firm AT Capital. The startup will use the freshly raised capital to expand its business across India and enhance its product line by introducing new product categories.
Founded by Neha Kant and Pankaj Vermani in 2013, the startup is profitable and growing at a rapid pace. Clovia clocks 75 per cent of its revenues from its website and the remaining 25 per cent comes from its physical offline stores which it launched two years ago. The lingerie startup is planning to introduce products like teen bras, athletic leisure, sanitary pads and maternity wear.
Singapore-based AT Capital manages ₹17,500 crores ($2.5 billion) in assets with a presence in more than 10 countries. Clovia earlier raised ₹28 crores ($4 million) from Singularity in April 2017. Prior to that, it raised ₹32.9 crores ($4.7 million) from IvyCap Ventures in June 2015. The company has raised ₹130.9 crores ($18.7 million) in 4 funding rounds since its inception.
Clovia competes with Zivame in the lingerie segment. Bengaluru-based Zivame has raised ₹343 crores ($49 million) in total funding from investors like Zodius Capital, IDG Ventures, Kalaari Capital, Unilazer Ventures, Chiratae Ventures and Khazanah Nasional since its inception in 2011.
The retail industry in India is estimated to be worth ₹45.5 lakh crores ($650 billion), according to E&Y. However, the organized retail industry contributes only ₹4.55 lakh crores ($65 billion) and that includes e-commerce business. Using its e-commerce and omnichannel business model, Clovia is penetrating smaller towns to capture the ₹2,100 crores ($300 million) market in these towns.