After raising $2.7 Mn barely a week ago, online lingerie retailer Zivame is on a look out for more capital infusion as it plans for an aggressive expansion. According to Economic Times (ET), the Bengaluru based lingerie startup is in talks to raise $50 Mn at a market valuation of nearly $200 Mn.
ET report claims that existing investors Khazanah and Unilazer Ventures (promoted by Ronnie Screwvala) may sell their stake to the new investor while the new investor will also make infusion of primary capital in the startup.
Following the upcoming funding, Zivame plans to ramp up its offline presence – increasing the number of stores from current 35 to nearly 60 by the end of next year. The company actually operates an omnichannel model, commanding a dominant presence in both offline as well as online lingerie market.
As of today, Zivame operates offline stores in Bengaluru, Pune, Mumbai, Hyderabad, Delhi, Noida, Gurgaon, Mysore and Chennai. On the revenue front, the company posted healthy revenue of Rs 140 crore in Fy19 and is expected to clock revenue of Rs 430 by the end of next year.
In the past, Zivame counted high profile investors like Kalaari Capital and IDG Ventures, before both sold their stake to Zodius Capital. Today Zodius Capital is the largest stake holder in the company with nearly 60% stake.
Zivame operates in a market that is highly under-penetrated, a fact that is especially true about the online lingerie market. Even today most women in India are still habituated to buying inner wear products from offline stores with unbranded products commanding substantial market share.
Zivame currently commands 26% market share in India’s online women lingerie market. If industry experts are to be believed then the market is currently valued at roughly Rs 430 crore.