Indus B2C Global Pvt Ltd, a Delhi-based company that operates B2B business and the e-commerce site Vithi.com, is in talks with France-based PE firm IndEU Capital to raise around $6 million for its e-commerce venture, Tushar Kansal, co-founder of the company, told DEALSTREETASIA.
Indus B2C launched a hair extensions brand LeModish in 2014 and sells products through its own e-commerce portal Vithi.com. It has a whole range in LeModish hair extensions including Remy, Clip on, i Tip, U Tip, Bulk, Wigs etc.
Vithi plans to use the funding for digital marketing, setting up a new office, hiring more people and to diversify into new product lines.
The startup currently has more than 10 members in the team and aims to increase it to 50 in next 2-3 months.
An email query sent to IndEU Capital to know more about the deal, did not elicit any response till the time of filing this article.
“Since its inception, we have got around 10,000 users and see the similar number of traffic every month which we expect to grow to 5 lakh by March 2016, Tushar further said.
It competes with the likes of Elitify.com, Darveys.com and Exclusively.com. These sites cater mostly to Indian market whereas Vithi.com also has an export business.
Launched in 2014 by Tushar Kansal and his cousin brother Prashant Kansal, Vithi.com is an e-commerce venture which aggregates wellness brands and works with leading global courier companies to ship its products to anywhere in the world.
An MBA in finance from University of Delhi, Tushar was CFO of Distribution Logistics Infrastructure before starting this venture. Previously, he had worked with the companies like Deloitte Touche Tohmatsu, Brand Capital, Aircel Ltd and MTS India.
Prashant is a textile and real estate industrialist and served as the director of SAP Projects Pvt Ltd before co-founding this venture.
Indus B2C was started in 1995 as an educational entity and has expanded the business in other sectors like real estate, e-commerce, financial advisory and astrology.
Talking about the challenges faced during the brand extablishment, Tushar said, “we faced tremendous challenges in choosing the right verticals, right partners – suppliers, vendors, supply chain logistics and right pricing etc. The other challenge was juggling between varied lines of business bound by a common belief and passion for the internet.”
Vithi claims to close around 400 orders per month and an average order cost is worth Rs 3,500 with a net margin of 30 percent.
French PE firm IndEU Capital announced to launch a fund to invest in Indian lifestyle and luxury companies which is expected to close next month. Family offices and private investors from Europe, southeast Asia and the middle east have contributed to the fund.
The fund will invest between $1 million and $8 million for minority stake, spread over 12-14 mid-to-luxury segment companies with an enterprise value of up to $20 million.