Kolkata-based Rare Planet Handicrafts Pvt Ltd has raised Rs 3.5 crore ($477,050) in a pre-Series A funding round led by Uni-M Ventures and incubator and accelerator Venture Catalysts, it said in a statement.
Others that participated in the round include Wow! Momo co-founder Sagar Daryani.
Rare Planet was set up in 2015 by Ranodeep Saha and Vijay Kumar. The company says it aims to promote handicraft by empowering local artisans and providing them with sustainable employment opportunities.
The company claims it has so far helped over 2,000 artisan families register an average increase of 120% in their income. It currently has a presence across 100 locations in the country and says it has retailed more than five lakh units worth Rs 20 crore.
It will use the capital it has raised to grow its product range, as well as expand to newer markets and increase the size of its online business.
“We remain committed to creating greater value for rural artisans and taking indigenous Indian handicraft items to a much larger audience across the globe keeping profits growing quarter-on-quarter,” Saha said.
Separately, Uni-M Ventures co-founder Nav Bhaiya said the firm was confident its investment would help the company scale and promote local artisans across markets. “Rare Planet is a rare combination of business acumen and socio-economic values,” he added.
In May last year, the company raised Rs 1.1 crore in a seed funding round led by Venture Catalysts. At the time, it said it would use the capital to strengthen its team and create a strong pan-India brand identity.