FabAlley Raises Rs 5 crores Venture Debt from Trifecta Capital

Online fashion platform FabAlley said that it has raised Rs 5 crore in venture debt from Trifecta Capital. The company plans to use this funding to augment its offline growth.

“We have a clearly identified use case for debt as we move towards a more aggressive omni-channel growth strategy. Offline expansion is a more capital-intensive proposition and funding these capex requirements is best done through debt which is lower cost capital as compared to equity,” said Shivani Poddar, co-founder, FabAlley.

Read Also: How to Raise Funds for Startups in India

Nilesh Kothari, co-founder, Trifecta Capital, said, “Online Fashion is growing at around 50% CAGR and is expected to be an US$ 20 bn market by 2020. The combination of a proprietary tech platform enables just-in-time inventory fulfilment, agility in the introduction of new designs, and a vertically integrated supply chain resulting in affordable products has allowed them to solve the biggest challenge faced by the segment – ever-evolving fashion trends and inventory risk. We look forward to supporting them through their exciting journey.”

According to Tanvi Malik, co-founder, FabAlley, the company is planning to use the fresh capital infusion to expand geographically into the top metros and affluent Tier-I cities.

“We plan to grow from 3 own-stores to 25 stores in the next 12 months and will be deploying 10-12 crore towards the expansion. The aim is to grow our Indya brand both offline and online, while the FabAlley brand with its rapid fashion, global fashion strategy grows primarily online through horizontal and vertical category additions in the western wear apparel and accessories space” she said.

Know more about the venture

Launched in 2012, the company claimed it is on track to clock Rs 100 crore in Gross Merchandise Value in FY18, exhibiting a 100% growth over the previous financial year. Later, in 2016, FabAlley entered the offline market with a tie-up with Future Group’s large-format fashion retail chain - Central.

Read Also: Mad Street Den raises funds from Sequoia Capital