Stage3 is a unique fashion-rental platform and the startup has raised $2 million. This is the company’s Pre-Series A fund raising effort and the major investor in this round is Blume Ventures. The concept Stage3 is built on is renting out designer outfits to its customers. This does the job of creating a level playing field where those who cannot afford such stylish clothing get an opportunity to be seen in them.
The range of clothing the startup rents out includes those for men and women. The company says the funds now raised will be deployed in enhancing its data capabilities, expanding the brand’s footprint in the offline segment and in further broad-basing the product offerings. Stage3 will also strive to bring on board more popular celebrities to endorse its glam wear and designers.
The startup has had a phenomenal growth of 350% year-on-year and possibly this has helped the company gain the confidence of the investors. The basic model developed by the startup ensures that there is no huge inventory cost since the clothes once taken into stocks remain intact with just rotation while being rented out. This would constitute almost 80% of the inventory. There will always be the cycle of more additions and the soiled ones being replaced.
Parallelly, Stage3 does have a selling model of business as well, for which it has developed a brand “Alaya”. The rental business has given some insights on the tastes of the young men and women in the current fashion market and they rely on their designers and style developers to create this range of fashion for sale.
The third business model within this unique platform is where owners of designer wear can voluntarily list their garments on Stage3 and allow others to rent them.
In the end, the young aspirational millennial gets to enjoy the best of both worlds. They don’t have to invest heavily in building a wardrobe of clothes they don’t in any case wear frequently, but still enjoy wearing the best in the market at a fraction of the cost.
Stage3’s unique, expansive ecosystem comprises 100+ designers, fashion enthusiasts and a network of relations with 25 celebrity stylists, 150+ leading bloggers, influencers and 50+ celebrities.
Commenting on Stage3’s proposition, Sabena Puri, CEO and co-founder said that dress up is undergoing transformational changes with millennials interested in engaging in a variety of fashion experiences rather than a owning a closet full of clothes that they no longer have interest in or use of. Constant exposure to the best of designs and creations the world over, their desire to experience such fashion is high. Platforms that make accessing such products easier for the buyer have great potential for success. “Through our offerings, we want to bridge this gap and help our customers be on top of today’s fashion game without having to worry about high pricing, seasonality or storage woes. At Stage3, we have proven that the sharing economy is going to change the way we consume fashion in India.”