Craftsvilla tapping fund raising options

Online marketplace, Craftsvilla that specializes in

Indian products is in talks with various fund houses to raise 3 to 5 million dollars (Rs 17 to Rs 29 crores) as a part of its first round funding. The funds raised would be utilised into marketing and branding initiatives.

The company that specializes in selling fashion jewellery, saris, salwar suits and Indian handicrafts bagged seed funding of 1.5 million dollars (Rs 8.7 crores) from Nexus Venture Partners among others in 2011. The company has partnered with 4,000 sellers that include artisans, housewives and designers who display their wares on the site.

Craftsvilla charges a flat 15 percent commission on every product sold through its site. Till date one lakh customers have bought products from the company, with three-fourth of the transactions happening out of India. The average bill size is Rs 1,500. In terms of revenue contributors, nearly 50 percent is accounted by jewellery with saris and salwar suits contributing 25 percent to the revenues.