C2C fashion startup Coutloot has raised an investment of $1 million in its pre-series A funding round led by Chinese investment firm Jadevalue Fintech, which is the investment arm of CashBUS.
CashBUS itself is a microfinance startup that has reached the Unicorn status and is quite popular in its home country for backing many successful startups. The other investors in this round included the existing investors in CoutLoot, Artha India Ventures as well as Venture Catalysts, a leading VC cum incubator in India.
CoutLoot has made remarkable progress since it began its operations with a one-city presence in Mumbai to being able to service 14 cities now. In terms of the business model also, CoutLoot was involved only in selling in the beginning before evolving into a premier C2C platform for different labels to sell to the customers through it.
âWith CoutLoot we've established a seamless model for C2C fashion which has captured the imagination of our audiences very fast. We are aiming for aggressive and comprehensive expansion and with this funding boost; we'll aim to expand our footprint not only in terms of geography but by diversifying our operations into other categories within the C2C model as well. The aspiration value in India is increasing and the circular economy model compliments it really well, times will only get exciting with the next set of 500 million users coming online in the years to follow, weâre focused on building a mass market business for the millennials,â CoutLoot Co-Founder Mahima Kaul said,
It has also brought on a few celebrities also on board listing their dresses under a unique âCelebrity Closetâ on its site. The app has seen over 500,000 downloads so far. Coutloot has formed exclusive partnerships with some of the celebrities from the television space and they include Karishma Tanna, Aditi Bhatia, Niti Taylor and Aarti Chabbria.
The investment by the CashBUS backed Jadevalue Fintech is seen as the increasing interest in the as yet not fully exploited Indian fashion market and the C2C and P2P (peer-to-peer) models of online or offline retailing are also gathering the necessary mass.
Commenting on the fundraise, Johan Uddman, General Manager, Jadevalue Fintech said, ââWe believe that a technology driven re-commerce marketplace in India for the mass market creates value for all parties involved, including sellers, buyers and the society at large. By having a customer centric approach and building strong proprietary technology, CoutLoot creates a seamless and engaging customer experience, removing many of the barriers often encountered on the more traditional platforms. The young team only adds to the element of growth and aggressive approach to the segment.â
CoutLoot expects to deploy the funds received through this investment round in developing and expanding its business both by enhancing the areas of operation geographically as well as in the range of product offerings. The company has also plans to try the offline model to complement the online business. It has been running a pilot âPop up shopâ which may be developed going ahead.