Aavishkaar invests Rs 18.6 cr in Mela Artisans

Social venture firm Aavishkaar Venture Management has invested Rs 18.6 crores

in luxury lifestyle brand Mela Artisans, a company founded by India-origin entrepreneurs Navoze Mehta and Sonali Mehta-Rao. Mela, though headquartered in the US, sources products from artisan clusters from Uttar Pradesh and Rajasthan, among other places.

Founded in 2010, Mela has a tie up with many high-end retail boutiques and chains, including, Neiman Marcus, Bergdorf Goodman and Bloomingdales, across the US, Europe and Latin America, to retail products, it sources from the country. It also has an online presence and retails through its website. The company will utilize raised funds to expand its collections apart from growing its domestic and international distribution channels. The aim is to partner with artisan societies across India.

The investment was made from the second impact investment fund - the 94 million dollars (Rs 583.4 crores) Aavishkaar II that invests between Rs 3 crore to Rs 50 crores in early-stage ventures operating in the country's low - income states, such as Uttar Pradesh, West Bengal and Bihar. In the past, it has invested in HR Foods, CAOS Apparels, Mera Doctor and Nalanda Learning Systems.

The investment in Mela Artisans is the firm's 12th transaction from the fund, which is backed by a host of global impact investment firms, such as International Finance Corp, the private investing arm of the World Bank, Rianta Capital and British development finance institutions CDC.