Vietnam-based Leflair, an online premium consumer goods retailer, has closed a $3 million Series A funding round led by Capital Management Group. The latest transaction brings its aggregate equity financing to close to $5 million.
Founded in December 2015 by Loic Gautier and Pierre-Antoine Brun, Leflair offers premium brands and follows the flash sale model, providing its customers with limited-time-only deals of premium brands discounted up to 70 per cent off retail prices.
It currently operates in Vietnam and maintains offices in Ho Chi Minh City and warehouses in Ho Chi Minh City and Singapore. Proceeds from the investment round will see grow its portfolio of international brands, expand its technology team and overhaul its warehouse operations to improve logistics.
To date, Leflair has successfully closed three rounds of fundings and attracted foreign investors which include Google’s VP for India and Southeast Asia, Rajan Anandan; the CEO of German consulting firm Roland Berger, Charles-Edouard Bouee; and venture capitalists from the US, Italy, Hong Kong and South Korea. The latest funding round is three times larger than its previous round 13 months ago in December 2016.
In an official statement, Loic Gautier, Co-founder and CEO of Leflair, said: “Although this year competition is intensifying among the marketplaces in Vietnam, we have differentiated ourselves by becoming the go-to destination for more premium, higher-priced and higher-quality Fashion, Beauty and Home brands.”
Leflair claims to have 700,000 members and 1,100 local and international premium brand partners. It also claims to have seen a more than two-fold increase in revenue and active customer base yearly.
Gautier attributes the firm’s success to its marketing strategy and its favourable price point. He adds, “As we sell large volumes in a short time and on a narrower assortment as opposed to marketplaces selling a few items from thousands of different products, our capacity to negotiate with brands allows customers to buy always more at the best value.”
About 75 per cent of its customers are reportedly women aged between 25 years and 45 years living in the tier-1 and tier-2 cities of Vietnam. Return customers currently represent 30 per cent of Leflair’s active customer base, who spend on average $100 every month on the platform.
“The purchasing power of the Vietnamese is growing much faster than the capacity of the existing retailers and distributors to bring more new brands. This is where Leflair adds the most value and with the new round of financing, we will continue to solve this problem at a much faster pace,” Gautier noted.