Online fashion store Pernia’s Pop-Up Shop is in advanced talks to raise $1-1.5 million in its first round of funding, founder Pernia Qureshi said.
The store will use the funds for marketing and acquiring new customers. It is also hiring more staff, including senior-level executives.
“We have established our brand quite well and organic growth has been quite good so far, but there is always a potential to reach out to customers. So, our primary objective is to use the funds in marketing and enhancing the customer base,” Qureshi told Mint over the phone.
Apart from jewellery, sarees and accessories from top Indian designers, the store also sells its own Pernia Qureshi label women’s wear.
Investment bank Ashika Capital Ltd is advising the company on fund raising.
“We are currently targeting venture capital funds, high-net-worth individuals and family offices to raise funds for the company. It’s a very niche kind of business and therefore there is strong interest from investors. Customer segmentation in this business is very clear and there is lot of potential to scale further,” said Mihir Mehta, assistant vice president, Ashika Capital.
India’s online fashion market is estimated to touch $12-14 billion by 2020 on the back of smartphone penetration, better logistics infrastructure and evolved shoppers, said a report released by Boston Consulting Group (BCG) and Facebook in March.
Online fashion shoppers will more than double to 130 million from the current 55-60 million, the report said.
Several online fashion stores have come up to cater to the changing fashion trends of Indian customers.