Fashion E-commerce startup StalkBuyLove has raised $1 Million in venture debt from Trifecta Capital. Previously, in December 2016 the startup had raised series A round of equity funding led by Kalaari Capital.
Venture Debt is a type of debt financing provided to venture-backed companies by specialised banks or non-bank lenders to fund working capital or capital expenses, such as purchasing equipment.
The Delhi-based fashion startup was founded in 2013 by Rocket Internet alumni Tushar Ahluwalia, Nishrit Srivastava, Aashna Chopra and fashion expert Shikha Ahluwalia. StalkBuyLove is an Online fast fashion brand, they provide the trendiest styles and best fashion inspiration updated on our fashion portal every day. The startup is Owned and operated by Ad Victoriam Ventures Pvt Ltd.
Commenting on the venture debt, co-founder Tushar Ahluwalia said, “We saw a lot of merit in taking venture debt and partnering with Trifecta. It is a cheaper source of capital and would allow us to reduce our overall cost of funds, thus, improve ROE (Return On Equity) for shareholders.”
He also said: “The company is purchasing a software from Israel to strengthen its supply chain in addition to introducing new categories; aiming to double its revenue run rate to Rs100-150 crore by December 2017.”
Trifecta Capital is an early stage technology fund that invests in the best start-ups. Recently, the venture Capitalists have invested Rs 20 Crore in home service startup UrbanClap and Rs.45 Crore of venture debt in online grocery startup BigBasket.
StalkBuyLove has to face serious competition from other online fashion portals like Myntra, Jabong, LimeRoad, Koovs, Voonik and a bunch of smaller startups such as Yufta, StyleTag, Wooplr, and Cloutloot.
According to a report by Google, India’s online fashion business is slated to grow to $35 billion by 2020 and is likely to become the largest category ahead of consumer electronics. Read more about Indian Startup Ecosystem.