Fashion and beauty industry is worth several hundred billion dollars. The youth is hooked on to the fast-moving trends and need to keep their fashion updated always. The e-commerce platforms have witnessed high growth rates in recent times. The ease of purchasing online and the vast options s/he gets on these platforms make it a better option than the offline versions. However, there are few downsides as well such. There might be some size and fitting issues and then the return and refund processes if any.
Zilingo is a new player emerging in the online fashion industry. Over the past 3 funding rounds, the company has raised around $80 million from various major investors. However, in the 4th round – Series D round, the company raised a whopping $226 million. This round raised the total capital of the company to $308 million.
The latest funding round saw investments from major players from Sequoia Capital, Temasek Holdings, Burda Principal Investments. More players like Sofina, EBDI also invested in the company for more growth. According to an Inc42 report, the funds from this round will be used by the company towards their infrastructure developments.
The company operates in around 8 South Asian countries and China. It also has numerous supply bases in China, Bangladesh, Singapore, Thailand, Indonesia, Vietnam and Cambodia. The region of South Asia is a fast paced growing smartphone market. Internet consumption has also risen quickly in this region. The combination of smartphone penetration and internet users have added to the rise of e-commerce platforms in the region.
The company has been founded by two Indians named Ankiti Bose and Dhruv Kapoor, however, they have no plans to launch Zilingo to India in the near future as reported by Inc42 after their interview. The South East Asian market is a better option to bet on than the Indian market. There are major players such as Flipkart and Amazon already present in the Indian market and it is difficult to compete with for a new company like Zilingo. Moreover, there are proper fashion based e-commerce platforms such as China based Club Factory and Flipkart owned Myntra and Jabong present in the country. These players are already performing really well and it is better for Zilingo to operate out of the profitable South Asian market.
Their aim is to integrate modern technologies with the fashion industry and its supply chain. This way, the fashion and beauty products can reach a wider audience who in the past remained mostly unaware of the ongoing fashion trends.