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Tag: LimeRoad

  • LimeRoad raises $45 million in less than a year

    LimeRoad raises $45 million in less than a year

    MUMBAI: LimeRoad, a social-shopping platform for women, has raised a series C financing following rapid growth in community engagement, scrapbook creation and revenue growth.

     

    This two-year old company has raised total funds to the tune of $45 million in the past year and this round comes within ten months of its Series B financing. Tiger Global Management, an existing investor, leads the new round with participation from existing investors Lightspeed Venture Partners and Matrix Partners India.

     

    Over the last year, LimeRoad has been steadily nurturing a unique hyperactive community that takes products from thousands of sellers from across the country and shows users how to transform even the most basic white t-shirt into a style statement.

     

    The community posted more than 1.5 million style statements as “scrapbooks” last month alone, with per day postings reaching 100,000+, achieving 100x growth in less than a year.

     

    “It’s transformational,” said a graphic design student in Delhi Komal, who has made 800 scrapbooks. She added, “Scrapbooking on LimeRoad makes me feel ultra stylish.  It’s a daily routine that is a release after a hard day.”

     

    A homemaker in Jharkhand, Jhanvi, who has created 2000+scrapbooks, stated, “I feel like I am getting out of my town.  It has helped me personally develop, changed my sense of style.  I purchase my looks for myself and love it.  Now I try so many new things.”

     

    LimeRoad’s machine algorithms rank order and display the highest quality scrapbooks for millions of users to find the trendiest products and styles.

    LimeRoad was founded by Suchi Mukherjee, Prashant Malik and Ankush Mehra, who collectively have previously held leadership roles at eBay, Skype, Facebook, Samsung and Reliance Hypermarkets.

     

    LimeRoad founder and CEO Suchi Mukherjee said, “We are revolutionizing the way lifestyle products are discovered and ultimately bought in India, and in doing so, we are changing social order. Smaller unique sellers from across the country are getting discovered, women from across the country are using scrapbooks as a medium of style expression, and millions of users are getting access to highly affordable and unique style.”

     

    “We grew GMV 600 per cent in the last 12 months, thanks to our passionate users who visited our app on average more than 38 times in the last six months. That’s a delightful 76 times a year! As a result 80-85 per cent of our orders come from organic traffic.”

     

    Tiger Global partner Lee Fixel said, “The uniqueness of LimeRoad lies in the passionate user base and the mission of providing an engaging platform for smaller brands to thrive.  We love this approach and are investing behind it and behind the team executing the strategy.”

     

    Lightspeed Advisory Services India managing director Bejul Somaia added, “We continue to be highly supportive of LimeRoad. This is a truly exceptional team that has already disproved many accepted notions in Indian online commerce as a result of which they are showing extraordinary organic traction.”

     

    Matrix India managing director Avnish Bajaj said, “The LimeRoad team is a unique combination of a crystal clear vision combined with sheer execution prowess.  We continue to be amazed by their sheer passion, sharp thinking and their core engagement metrics.”

  • Do celebs really push the online gamut?

    Do celebs really push the online gamut?

    MUMBAI: Everyone is talking about it. Everyone is on it as well. Online retailers have caught everyone’s fancy and if stats are to be believed then they are here to stay.

     

    The e-commerce industry has been growing at a rapid pace; 2013 saw the industry grow over 65 per cent which is currently estimated to be at $3.2 billion. As new competitors entered the space to encourage the shopaholic in all of us to click on the ‘buy now’ button and get parcel at the place of convenience, the competition has only grown manifold.

     

    To woo the ever-confused shopper who has too many options to choose from, thanks to new players entering the lucrative e-commerce market, the online retailers have to lure them with various offerings. Be it delivery in one day or exclusive brands on board, they have done it all to make sure customers come to them, time and again.

     

    Discounts are offered every now and then, and on special occasions like anniversary through various contests, customers are awarded shopping points and gifts. For instance, eBay India launched a Way Too Fab (WTF) campaign for its ninth birthday bash. As part of the celebration, it created a special page www.ebay.in/waytoofab that allowed any user who purchased products which valued more than Rs 500 on 12, 13 and 14 March 2014, to spin the Wheel of Magic which offered consumers an assured gift ranging from special coupons to mobile phones and tablets to name a few.   

     

    However, the latest mantra has been to launch eye-catching TVCs. Amazon India launched its first TVC during the most-sellable property on Indian television – Indian Premiere League (IPL). Having said that, who can forget the ads of Flipkart? The ads featuring children role-playing as adults went viral and soon many others followed. After a lull period, the war on the television screen has begun again as the new entrants want to leave their mark on people’s mind.

     

    Like Victoria Secret would be just another brand without its angels, similarly, each e-commerce platform is trying to be different than the other.  And for this, these portals have decided to attach popular faces to the brand. The hottest fad currently is popular Bollywood faces associating themselves with various e-retailers.

     

    Ranveer Singh, Lisa Haydon, Neha Dupia, Farhan Akhtar, Purab Kohli are just a few names associated with lifestyle e-retailers. When asked how does it help the platform, Myntra’s chief marketing officer Vikas Ahuja says, “By associating with celebrities, Myntra is making an effort to not just provide fashionable apparel and accessories but also be a thought leader in the latest style trends that are driving the fashion industry. Our association with celebrities such as Ranveer Singh for Roadster and Lisa Haydon for the Myntra brand has strengthened our focus on fashion, providing fans and customers an enthralling experience that goes beyond just shopping on our site.”

     

    LimeRoad, which caters to women’s sensibilities only, believes that though it has differentiated itself from other e-commerce players by moving away from a discount led offering, it did bring in Neha Dhupia on its management team. The reason behind it was that the team felt that her style could inspire a lot of women who shop on the site and those who make scrapbooks to express their style on LimeRoad. “Celebrities who reflect the brand’s promise help you get the right people to the site. They also bring in a lot of freshness and relevance to the context,” says CEO Suchi Mukherjee and adds, “Neha Dhupia is not only a pretty face but she epitomises the hard work, grit and dedication needed to make it big in life.”

     

    Others like YepMe, Lenskart etc too have celebs endorsing them. The rationale behind it is that most of them believe that celebrity associations help to create awareness, provide credibility and stature to the brand and rub-off of the celebrity’s personality and appeal onto the brand which strengthens the brand positioning / attributes further.

     

    Online apart, many companies have shopping on television ventures as well. However, these 24*7 channels which cater to mostly housewives don’t have celebs promoting them.   “Celebrity endorsement is beneficial for instant recall of the brand. When customers watch their favourite stars endorsing the brand or promoting a clothesline it does garner some visibility and helps draw eyeballs. But in the long run it’s all about the products and propositions that any brand has to offer,” believes HomeShop18 CMO Vikrant Khanna.

     

    The channel through its offerings, customer relationship management, value proposition, three-screen presence on TV-Web-Mobile and technology, wants to stand apart from the competition.

     

    HomeShop18 recently announced its TVC around the mantra “Shopping Makes Me Happy,” which had (talking) cats connecting with consumers to establish an emotional connect appealing to their desire for shopping. Similarly, Star CJ Alive, which parted ways with Star Network, introduced new mascot ‘Shoppie’ which works at bridging the gap between the current name and until the new name is finalised.

     

    TV has the highest media reach so irrespective of the industry, it’s still one of the most effective advertising medium. However, with changing times most of these brands have a 360 degree approach. New mediums like digital and social media have become an essential part of business today.

     

    Companies are taking extra efforts in the digital space to supplement the tools social media offers. Facebook, Twitter, YouTube channel, Instagram etc. are deployed to engage with peers and reach out to existing and potential customers across the digital platform.

     

    One of the best examples of luring youngsters today who are perpetually online is Myntra’s latest campaign -‘Live for Likes.’ The platform so far has also conducted other campaigns, both online and offline like the survey of India’s Most Fashionable Politician, Indian Fashion League, the Online Treasure Hunt, Online shopping fest, celebrity engagement through Fashion Icon of the Month among others. All this to encourage shoppers to be a part of its brand story.

     

    Online analysts believe that whatever be the case – online dominance or celeb in hand – a brand needs to be very clear of what it wants to accomplish. “There is a string of young actors who are willing to come on board. However, partnering with a right celeb is also very important. He/she should be able to generate interest among visitors on the site which should invert into sales to be successful,” says an analyst.

     

    A brand expert adds that these celebrities come at a certain price, so have to be used wisely. 

     

    Celebs might help generate initial traffic, but loyalty is dependent on product offerings, propositions, value, after-sales service, ease of use of the portal, hassle free delivery and return policies and lastly an overall virtual shopping experience. “If these important things are in place, shoppers will return to explore more, irrespective of the portal being endorsed by a celebrity or not,” concludes the expert.

  • Flipkart and Myntra join hands

    Flipkart and Myntra join hands

    MUMBAI: The e-commerce sector saw a purple patch last year and continues to do so.

     

    Recently, LimeRoad raised $15 million series B funding; Jabong too closed a multi-hundred million dollar investment deal and Amazon India entered the fashion and lifestyle category.

     

    Keeping up with the competition is surely going to be tough. Therefore, to bring high quality and affordable lifestyle products to the customers, Flipkart has joined hands with Myntra, an e-commerce platform for fashion and lifestyle products. Bangalore-based Myntra has partnered with more than 650 leading fashion and lifestyle brands in the country.

     

    Sachin Bansal and Binny Bansal, the co-founders of Flipkart, and Myntra’s founders, Mukesh Bansal and Ashutosh Lawania, are excited to work with each other. In this new association, along with being the CEO of Myntra, Mukesh Bansal will also head the fashion business for Flipkart and join the board.

     

    “We believe that the future of fashion in India is e-commerce. We have known Mukesh for a long time and are delighted to partner with him. Myntra has a strong team with excellent domain knowledge. They also have the best relationships with lifestyle brands. This partnership will strengthen both our positions in the fashion space. We will continue to work as independent entities and grow together as leaders in the Indian fashion and lifestyle industry,” said Flipkart co-founder Sachin Bansal and Binny Bansal jointly through a statement.

     

    “We are excited to partner with Flipkart, the biggest e-commerce platform in India. Sachin, Binny and their team have built a pioneering e-commerce platform on a foundation of strong technology and customer centricity. Flipkart is the most powerful e-commerce brand in India and has a very ambitious agenda to build the next generation of retail in India. Leveraging mutual strengths, we will build Myntra into India’s leading fashion powerhouse and create many original fashion brands,” said Myntra co-founder and CEO Mukesh Bansal.

     

    This partnership will support Flipkart’s and Myntra’s shared mission to bring high quality and affordable fashion and lifestyle products to each and every Indian consumer. Post this announcement, Flipkart and Myntra will continue to work as independent entities and grow together as leaders in the Indian e-commerce industry.

  • After raising funds, LimeRoad bets high on “intelligent” marketing

    After raising funds, LimeRoad bets high on “intelligent” marketing

    MUMBAI: India’s online retail market has grown multi-fold in the past couple of years, courtesy the growing use of the internet and smart phones. According to a Crisil report, e-retailers have earned revenues close to Rs 139 billion ($2.24 billion) in the financial year ended 31 March, 2013.

     

    However, to succeed or for that matter survive in an exceedingly cut-throat online environment, these companies have to time and again generate money through equity funding or merge with other online players.

     

    One such player is LimeRoad, an online social discovery platform for women, which has raised a second round of funding of $15 million, led by Tiger Global, with participation from existing investors Lightspeed Venture Partners and Matrix Partners India. The company had in 2012 raised $5 million through its first round of funding, with participation from Lightspeed Venture Partners and Matrix Partners India.

     

    LimeRoad’s advisory team helped it build a strong proposition to get the right kind of investment partners for its business. The team comprises Ahti Henla who is the founding architect of Skype and Michael Swaiij, who is credited with the launch of e-bay and AOL in Europe.

     

    So what is on the agenda now? The website will be investing a large part of the funds in technology to further build the user interface on the platform and on mobile. “We have a great team on-board and we are looking to build it further with the help of these funds. So far, we have kept marketing flat, but we are now looking to increase spends on some intelligent marketing,” says co-founder & CEO Suchi Mukherjee.

     

    The blueprint of the marketing is a work in progress but the focus will largely be on social networking websites. “Currently, our primary focus will be on building our mobile app further. We intend to make the LimeRoad experience for women nothing short of addictive. Our plan is to win over women mobile users across the country with our mobile app that is light, super-fast and extremely easy to use,” adds Mukherjee.

     

    What made Lightspeed Venture Partners invest in the e-commerce site for a second time? Says Lightspeed Advisory Services India MD Bejul Somaia, “We continue to invest in what we believe is a truly exceptional team that consistently refuses to take short-cuts and instead, focuses on finding scaleable, long-term solutions to difficult problems.  The LimeRoad team has already disproved many accepted notions in the world of Indian online commerce. For example that it is not possible to grow without offering heavy discounts or that Indian users aren’t savvy enough to embrace deep social activities like scrapbooking, curating collections or sharing.”

     

    However, there are experts who feel that it is not easy to raise money. Seedfunds’s founding partner Mahesh Murthy says, “It is getting increasingly difficult for e-retailers to raise money these days and the only ones who seem to manage it these days are those doing second rounds. This is not because of a paucity of new retailers – but because of the belief – not necessarily true – that it takes a lot of money to build a successful retail brand. Conversely, the raise of a big round is no guarantee that your brand will survive – just ask those who have been purged or merged into nothingness.”

     

    With an already overcrowded online retail market, how does LimeRoad plan to break away from the clutter?

     

    LimeRoad.com believes that unlike the rest of the players which are still using conventional methods of ecommerce, LimeRoad uses Web 2.0 elements. Through these, it has engaged with consumers with its proprietary Scrapbook feature. “We measure our success basis how well we engage our users and today, we have a community of 5000 + Scrapbookers who have curated more than 75,000 looks and our most avid Scrapbookers create between 5-7 looks every week,” says Mukherjee.

     

    About the TG, Mukherjee feels it is no longer about appeal but more about ease and convenience. “Since youngsters are more socially active, they like to discover new websites, new products and share with their friends. So, they are the ideal shoppers for e-commerce sites. However, at LimeRoad, we see an equal traction from shoppers aged 18-25 years and in the 30+ category, as our large collection of unique and exclusive products appeal to a more discerning, mature audience as well,” he says.

     

    The site isn’t scared of competition either and is aware that with too much competition, many try to woo and acquire customers through discounts. “Our approach is different, we believe in acquiring customers and creating brand loyalists through engagement. If you simply put up products on discounts, the customer loyalty is towards discounts,” states Mukherjee.

     

    The lifestyle online retailer promises its customers products from the deepest corners of the country, and to fulfill this, promise, it has 60 per cent vendors who retail exclusively on the platform. To give you an example, DAMA, which is Dastkar Andhra Marketing Association, closely engages with the weavers through handloom co-operatives. The fabrics and garments are hand woven and flawlessly handcrafted from natural fibres and dyes. They retail exclusively with LimeRoad.com and are not available anywhere else online.

     

    “Also, our vendors update stocks every 15 days, which fulfils our promise of enabling discovery and freshness,” says Mukherjee.

     

    On the e-retailer business model, Murthy opines, “LimeRoad follows the Pinterest-type model, with a mobile app front end. While UI will go some way -and is easy to replicate, it is your mastery over margins, unique designs and supply chain that will help you win in the long run. Executing on those fronts will be LimeRoad’s key challenge.”

     

    The e-commerce space in India has grown exponentially over the last couple of years and has witnessed a growth of 88 per cent in 2013, as compared to 2012 alone, as per various reports.

     

    Talking about the purple patch the e-commerce sector is enjoying these days, Mukherjee says, “e-commerce is here to stay and grow. Increasing internet penetration, fast adoption of 3G, and smart phones in tier II & III cities, and more retailers entering the e-commerce space will ensure that the e-commerce industry will remain a sunshine sector.”

     

    The year 2013 was a good year for the site and this year, its goal is to be the largest platform for social discovery of lifestyle products in south East Asia. LimeRoad aims to cater to everything that interests women when they are browsing online.