fashionandyou.com, a smile group venture raises USD 40 million

Company Brief

New Delhi, November 15, 2011

Smile Group Venture and Goldsquare Sales India Private Limited, (owner of India’s #1 online fashion & lifestyle – e-commerce brand fashionandyou.com), today announced that it has raised funding of US $40 (approximately) million from new and current investors. Led by Norwest Venture Partners and Intel Capital, Sequoia Capital India and Nokia Growth Partners also participated in this round.

Goldsquare will use the funds for its growth initiatives, including acquisitions, starting new business categories, as well as accelerating its growth in existing categories and geographies. The new capital will enable fashionandyou.com to further accelerate its member acquisition strategy and solidify the supply chain and distribution mechanism to provide best in class service to its 2.7 million and growing member base.

Sequoia Capital India previously invested in Goldsquare to the tune of USD 8 million in 2010. This investment was used towards growing the company’s product offering, strengthening its enterprise technology and expanding its distribution capacity.

Pearl Uppal, Co-founder and CEO, fashionandyou.com, said, “We are very excited about each of the partners we've chosen and the opportunities this financing creates, as we continue to expand into additional categories, and make strategic acquisitions to complement existing business lines. Our partners recognize that fashionandyou.com has only begun to scratch the surface of what we can offer global and Indian brands as they race to connect with the Indian consumer. With more than 2.7 million members, we already deliver millions of packages to consumers each year. With this new capital, we have everything we need to exploit the opportunities offered by this vast and rapidly-growing market and to develop fashionandyou.com into a world-class e-commerce powerhouse.”

Niren Shah, Managing Director, NVP India, said, “fashionandyou.com has been growing exponentially, and its brand is becoming synonymous with online fashion in India. The company has managed to scale its business significantly because of its early mover advantage, the strength of its experienced team of professionals from the Internet and retail industries, and the company’s strong supplier relationships. We are proud to add fashionandyou.com to our growing roster of premier e-commerce investments globally, and believe this team possesses the ability to grow the company further and uphold the company’s leadership position in India as the e-commerce market continues to expand at a significant pace.”

Sudheer Kuppam, Managing Director, Intel Capital Asia Pacific Region, said, “Internet access in India is no longer something that is limited to the workplace; more Indians are going online at home, too. Internet usage is also rapidly expanding outside of India’s main cities to smaller towns across the country. Fashionandyou’s compelling online shopping experience is proving to be a hit among women and youth across India, and this aligns well with Intel’s goal of promoting e-commerce as an important opportunity for Indian businesses and a convenient and efficient way to bring new products and services to Indian consumers.”

Mr. Shailendra Singh, Managing Director, Sequoia Capital India, said, “The consumer response to fashionandyou’s offering has exceeded our expectations and has resulted in 500% gross revenue growth since our investment less than one year ago. At this juncture, the company’s priorities are to improve the customer experience and implement world-class supply chain and customer management systems to serve customers better– this new round of financing is going to be an enabler for that.”

Harish Bahl, Founder and Chairman, Smile Group, said, “At Smile Group we have been passionate supporters of the growth of e-commerce in India and fashionandyou.com has clearly emerged as one of our best portfolio companies. By bringing the best brands, at the most affordable prices consistently, fashionandyou.com has changed the way lifestyle is e-retailed in India. Our dominance in the lifestyle e-commerce space is demonstrated by our huge presence on social media, with a fan base of approximately 1 million across Facebook and other social platforms. We wish to use this round of financing to continue to improve our offering & customer experience & continue to be the most loved fashion & lifestyle retail destination.“

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