Online retailer Fetise nets $5mn live on ET Now show

21 Dec,2011

By Sudhir Syal

 

In a deal that was sealed on television, early-stage investment firm SeedFund has committed to taking a minority stake in online men’s apparel retailer Fetise.com

 

The fund has committed to invest $5 million in the Mumbai-based company after a pitch made on Super Angels, a television series on the ‘Starting Up’ show broadcast by ET Now. (ET Now is part of the Times Group, which also publishes The Economic Times).

 

The show provides a platform for start-ups to make pitches to Angel Investors. And even before the show’s finale scheduled for March 2012, it has seen a start-up already raise capital on the show. Mahesh Murthy, one of the Super Angels on the show, is a co-founder of Seed Fund.

 

Fetise.com was also one of the shortlisted start-ups at the Proto. in, an industry event for startups that took place at Chennai in July this year.

 

The startup was founded in March 2011 by Chetan Bafna, Abhishek Shah, Somya Tambi and Subir Ghosh, college-mates who met at the ICFAI Business School in Gurgaon. In nine months, the start-up is clocking over 500 transactions per day at a revenue run-rate of Rs 2-2.5 crore per month.

 

Mr Mahesh Murthy, Managing Partner of the Seed Fund, said: “What attracted us to Fetise was a clear focus on Men’s Apparel, very often we see start-ups in the e-commerce space who want to sell everything, but here they’ve picked a category and built a large product line.”

 

Fetise.com’s product line includes men’s apparel, footwear and accessories, which has helped the company rack up average billing amount of Rs 1,500. Mr Anand Lunia, Executive Director of the Seed-Fund, who worked closely on the deal said, “Men’s fashion is a large category and the margins in this business also makes this vertical of e-commerce far more profitable than some of the others, we are looking closely at other private labels start-up within the space.”

 

Fetise.com has two warehouses and is planning to open more over the next 6-12 months. Mr Chetan Bafna of Fetise.com said, “Our fundraising process started six months ago on Super Angels, and we’re overjoyed that the fundraising has closed on the TV platform too.”

 

The next phase of Super Angels will be beginning in January 2012 with 10 start-ups making a bid to follow Fetise and raise funds successfully on the platform. Super Angels is a part of Starting Up which plays out every Tuesday at 11 pm, Saturday at 9 pm and Sunday at 10 am.

 

 

Source:The Economic Times

Copyright © 2011, Bennett, Coleman & Co. Ltd. All Rights Reserved

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