VelvetCase.com an online jewellery marketplace has raised $1.5 million in its second round of funding led by Uniqorn Ventures. Angel investors S Somasegar and TV Mohandas Pai also participated in this round.
The funds will be used to expand its technology, seller acquisition services and marketing.
It was founded by Kapil Hetamsaria and Runit shah. It connects Indian and International jewellery designers to customers in more than 8 countries. It allows the customers to send their own designs, which gets converted into a final piece of jewellery.
Kapil Hetamsaria co-founder of VelvetCase said,
“We are looking to acquire or develop technology that will help sellers set up their online stores, while helping track and manage inventory amongst other things. We may look at other mediums such as print and television advertising as a means to build the brand. The intersection of jewellery domain knowledge with experience of building cutting-edge technology is very rare to find and build, and we have done it reasonably well at VelvetCase.”
In 2014, VelvetCase.com raised $1 million from Chennai Angels and other Angel Investors, which includes, Arihant Patni, cofounder of Nirvana Venture Advisors, Jerry Rao, former CEO of software company MphasiS and Jacob Kurian, partner at New Silk route Advisors.
For an average value of Rs 30,000 its offers more than 100,000 designs. Sellers are charged with a commission of 7- 35 % per sale, with a receiving rate of 32- 38 % from customers. It exports to 5 to 7 countries which constitutes 10 % of its total sales.
In the next few months the startup plans to expand its business in 8 – 10 cities by setting up of kiosks and collaborations with brands. It also plans to add 1000 more sellers.
In India selling jewellery online is taken as a difficult task, considering the increase of distrust among customers for online shopping.