E-commerce fashion startup Beyoung has secured $4.89 million in an undisclosed funding round via the revenue-based financing platform Klub. The Udaipur-based firm will utilize the additional capital for marketing, growing its technology stack, developing its logistics, and increasing its offline presence.
The fashion brand stated that this money would be utilized to enhance its offline footprint across the country, with the opening of more than 100 outlets in Tier-2 and Tier-3 cities in 2023.
The company also plans to use the money for marketing campaigns, technological developments, and improved logistics.
Shivam Soni, founder and CEO of Beyoung, said, “The clothing industry in India is incredibly vast, but unfortunately, the stereotype is that better quality means higher prices. At Beyoung, we aim to challenge this stereotype by producing mass-affordable clothing accessible even to smaller cities.”
Since Meolaa secured an undisclosed sum as part of its seed funding round led by Ranjan Pai, chairman of Manipal Education and Medical Group (MEMG), the e-commerce sector is seeing a resurgence this month after a protracted funding winter.
The week prior, JSW One Platforms, the business-to-business (B2B) e-commerce division of JSW Group, received a Series A funding round of Rs 205 crore from Japan’s Mitsui & Co.
Beyoung is pushing affordable fashion to every nook and corner of India
Beyoung, which Shivam Soni founded in 2018, provides reasonably priced apparel and accessories. The business claims to have generated INR 150 crore in annualized recurring revenue (ARR) in FY23 and plans to reach Rs 500 crore in ARR by 2026.
“With e-commerce in India projected to reach US $ 200 billion by 2026, the fashion industry has been witnessing a surge in online retail, now accounting for over 35 percent of total fashion sales in the country,” said Klub’s Capital Platform vice president and head Sudharsan Venkatakrishnan.
“This trend is expected to continue, with a CAGR [compound annual growth rate] of 22 percent for online fashion retail over the next five years. Klub is thrilled to provide capital to Beyoung, a vibrant brand in this segment, and enable them to invest in technology, logistics, and marketing,” he added.
Klub, created by Anurakt Jain and Ishita Verma, offers flexible development funding with no personal guarantees or dilution of ownership in the range of INR 2 Lakh to INR 30 crore. In India, the firm has supported over 380 brands from various industries.
Earlier this year, Klub gave six businesses credit for up to INR 50 crore (around $6 million). These businesses include the plastic-free toy retailer Ariro Wooden Toys, the solar energy company Freyr Energy, the electric scooter manufacturer Hero Electric, the vegan skincare line Neemli Naturals, the electric ride-sharing company BluSmart Mobility, and the brand Ecofynd.