FabAlley raises Rs 5 funds, plans to use it for retail expansion

Online fashion platform FabAlley has raised Rs 5 crore in venture debt from Trifecta Capital and plans to use it to boost its offline growth. Nilesh Kothari, Co-founder, Trifecta Capital, says online fashion is growing at around 50 per cent and is expected to be a $20 billion by 2020. The combination of a proprietary tech platform enables just-in-time inventory fulfilment, agility in introduction of new designs, and a vertically integrated supply chain resulting in affordable products, has allowed them to solve the biggest challenge faced by the segment.

According to Tanvi Malik, Co-founder, FabAlley, the company plans to use the fresh capital infusion to expand geographically into the top metros and affluent Tier-I cities. Being launched in 2012, the company claimed it is on track to clock Rs 100 crore in Gross Merchandise Value in FY18, exhibiting a 100 per cent growth over the previous financial year. In 2016, FabAlley entered offline market with a tie-up with Future Group’s large format fashion retail chain Central.

FabAlley retails through its own website, online marketplaces and through its 3 retail stores and service over 2,000 orders a day, says the company. It also stated that it turned EBITDA positive in the last 3 quarters in FY18 and is expected to sustain an EBITDA positive rate of over 5 per cent in the next 12 months. The company also raised Rs 12 crore series a round in late 2016 from many investors.