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CraftsVilla To Expand Its Business Globally With The Newly Raised $34 Million Series C

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CraftsVilla, an online marketplace for ethnic products, today announced that it has raised $34 million in Series C round of funding, led by Sequoia India and LightSpeed Venture Partners, with participation from Nexus Venture Partners, Global Founders Capital and Apoletto.

The newly infused capital will help company to further build its engineering and product capabilities, enhance customer care, and scaling in the ethnic category to reach $500 Million GMV in the next 12 months.

While the company has already started its operations in Malaysia, it is planning to soon start operating in Indonesia. This new funding will allow the company to do so.

With this Series C round of funding, the valuation of the company now stands at $200 million. It is now planning to go public in the next 12 to 18 months, as per Manoj Gupta.

Earlier this year, the company had raised $18 million in Series B round of funding from Sequoia Capital, Nexus Venture Partners, Lightspeed Venture Partners and GFC.

We are looking at a valuation of at least a billion dollars in the next 12-18 months, before we go public. Our aim is to hit $500 Mn in GMV over the next one year.

said Manoj Gupta, co-founder and CEO of CraftsVilla

If CraftsVilla goes public, it will be the third e-commerce company of India to get listed and the first in the niche e-commerce game. Infibeam is the first one to get approval from SEBI to raise Rs. 450 crore via IPO. Today, along with its new funding round, Shopclues also revealed its plan to go public, following Infibeam.

CraftsVilla was founded in 2011 by Monica & Manoj Gupta. It is an online marketplace for unique handmade, handcrafted, organic and gift items. Claiming to have more than 25,000 sellers on its platform, the company is selling close to 3.5 million products.

The company is currently witnessing 6x Year-on-Year growth. In terms of GMV, it is the sixth largest e-commerce company in India, claims CraftsVilla. Currently, it gets 20% margin on the products, but over the next few months, the company is looking to launch its own private label in order to get more margins.

Shailendra Singh, Managing Director, Sequoia Capital India Advisors, said,

Craftsvilla empowers small household manufacturers of ethnic apparel and products to sell their products to customers across the world. Craftsvilla has risen to category leadership in the ethnic space with a lean marketplace model that has scaled in an unusually capital efficient manner. We are excited to continue to back them to grow Craftsvilla to the next level.

The online ethnic wear market is speculated to be worth around $300-500 million in size with the bigger horizontal e-commerce players like Flipkart, Snapdeal and Amazon aggressively pushing their presence in the segment.

The Ethnic products market in India itself is hugely scattered. While India is known for its traditional textiles, art, carvings, jewellery and other domains, there hasn’t been a one stop shop for interested buyers to buy such products.

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  • it’s a fake and fraud company.

    i ordered 2 items. ( salwar suits) on 11th sep.
    order id 103143388,103143389.

    out of 2 one of the salwar suit-103143388 i didn’t receive but in the system they have updated

    that product has been delivered successfully and receive a mail for the same. when i checked with

    the FEDEX courier they said it’s been returned back to the seller as they did not submit some

    required documents. i informed this to the customer care on 14th september but they never raised

    any ticket for it. after repeated calls on 26th sep customer care registered a complaint and

    said it will take 7 working days to resolve the issue. and get the refund. . its already a month

    now that i didn’t get any status from them. neither i receive the product nor the money.

    already dropped couple of mails but no response from the customer care.

    Delivery of the second salwar suit-103143389 was taking a lot of time for delivery for which i

    requested to cancel the order on 26th sep. i was told that the refund will be done within 7

    working days. but still now its not done. the customer care never bothered to give any reply of

    the mails sent.

    2-3 days back i received a mail saying that out of 5300 bucks 596 has been refunded back to my

    credit card account and remaining amount they will refund back later . and due to some technical

    issue they are not able to refund back the entire amount. i checked my credit card account details

    but didnt find the transaction details. already checked with the bank people but they said that

    amount is not credited to my account.

    its already more than a month that iam waiting for the refund.

    employees working are bloody idiots. never trust these people. never purchase any product from

    this company .