<article><a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Fashalot" target="_blank">Fashalot</a>, an O2O (online-to-offline) location-based fashion and store discovery mobile platform, is in talks with venture capital firms to raise up to $5 million Series A funding.</article>

<a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Fashalot" target="_blank">Fashalot</a>, an O2O (online-to-offline) location-based fashion and store discovery mobile platform, is in talks with venture capital firms to raise up to $5 million Series A funding.
The Gurgaon-based firm had raised an undisclosed amount of funding in April from <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=yournest">YourNest Angel Fund</a> and angel investor Rajul Garg.
&#8220;The funds raised will be used for technology scalability, product advancement, growth in the existing markets, opening new markets and team,&#8221; said Rishi Batra, co-founder and chief financial officer, Fashalot in an interaction with DEALSTREETASIA. He said that the round should be completed this year. 
O2O businesses, which have a big presence in China, are growing fast in India. While they have received only a fraction of the funding that their e-commerce peers have got, the opportunity is huge. Such startups draw mobile users to local physical stores and services.
Despite their fast growth, e-commerce firms get only 2 per cent of Indian consumers. The bulk of the market is offline retail, comprising of over 12 million brick-and-mortar stores, which the O2O startups have begun to tap. The O2O market in India is estimated at between $70 billion to $120 billion.
&#8220;E-commerce has solved well for the standard products such as mobile, electronics; however high touch &amp; feel categories will still be dominated by physical stores and massive volume that it can generate,&#8221; Batra said.
Investors who have previously funded O2O startups in India include Helion Ventures and Accel Partners, who put in $9.5 million in <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Crownit" target="_blank">Crownit</a>; Paytm, Tiger Global and SAIF Partners which participated in a $50 million round in deal discovery app <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Little" target="_blank">Little</a>, and Sequoia Capital India, which invested $20 million in <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Nearbuy" target="_blank">Nearbuy</a>. Paytm also acquired O2O marketplace Near.in last year.
O2O businesses typically charge a fee from the brands they send customers to, and share in the revenue from successful transactions. Batra said that Fashalot has driven more than 30,000 foot traffic to its partner stores in June 2016. This was spread across 2,500 listed stores, translating into 12 shoppers per month per store.
O2O businesses also provide incentives to customers, usually in the form of cashbacks. Cash-burn rates are much lower than that of e-commerce firms because O2O firms do not need to invest in their own infrastructure such as warehouses and logistics. They don&#8217;t have to fund discounts either, because merchants have ready in-store offers. &#8220;The main areas we need to invest in are technology, teams and opening new locations,&#8221; Batra said.
Also read:
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/?s=o2o" target="_blank">Indonesia: Kresna buys 20% stake in O2O e-commerce player Nurbaya Initiative</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/?s=o2o" target="_blank">China: Longrich leads $30m extended Series B round in O2O firm 8DoI.com</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/?s=o2o" target="_blank">Indonesia’s MatahariMall ties up with state postal service for O2O push</a>
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Fashalot, an O2O (online-to-offline) location-based fashion and store discovery mobile platform, is in talks with venture capital firms to raise up to $5 million.

India: O2O platform Fashalot is raising $5m in fresh funding

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India: O2O platform Fashalot is raising $5m in fresh funding

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