Mumbai-based Label Corp Pvt. Ltd, which runs online home décor and fashion portal TheLabelLife.com, has raised $3.1 million (Rs 20 crore) from Kalpavriksh, financial services firm Centrum’s private equity arm.
“We want to acquire new customers, though 70% of our revenue comes from repeat customers. This money will be used for customer acquisition,” Preeta Sukhtankar, founder of Label Corp, told VCCircle.
“Consumer-centric businesses are at an inflection point in India and The Label Life is well positioned to capitalise on this opportunity. The brand has demonstrated growth through innovation and strong customer engagement with good unitary economics,” Giri Krishnaswamy, chief investment officer of Kalpavriksh, said in a statement.
Label Corp was founded by Sukhtankar in February 2013. She earlier worked with Celebrity Marketing Agency, MTV and Seventeen Magazine.
The firm raised $1.09 million from Kalaari Capital in 2013. Subsequently, it raised around $500,000 more from undisclosed investors.
Sussanne Khan, interior designer and former wife of Bollywood actor Hrithik Roshan, owns some sweat equity in the firm.
The startup has more than 50 employees.
Earlier, the company had multiple platforms such as The Closet Label (with Malaika Arora Khan), The Home Label (with Sussanne Khan) and The Trunk Label (with Bipasha Basu). The firm integrated all three platforms into TheLabelLife.com in 2015 to consolidate traffic.
The fashion ecommerce segment in India is dominated by Flipkart, which owns fashion e-tailers Myntra and Jabong.
Voonik, Yufta, StyleTag, Wooplr, Cloutloot and StalkBuyLove are among other fashion ecommerce startups that compete with TheLabelLife.
In September, offline-to-online fashion store Fashalot raised an undisclosed amount of investment in its pre-Series A round from Capillary Technologies.
Another online-to-offline player Fynd raised $500,000 (Rs 3.3 crore) from seed investment platform Venture Catalysts in its Series A round of investment in March this year. Two months prior to that, it had raised an undisclosed amount of funding from former Snapdeal executive Anand Chandrasekaran, Arvind SportsLifestyle Ltd CEO Rajiv Mehta and Livspace co-founder Ramakant Sharma.