The brand will use the financing to scale its marketing and hiring efforts and to achieve a revenue of Rs 45 crores in FY 2023-24
Bengaluru: Apparel and fashion brand D’chica has raised Rs 1.62 crore from an Indian revenue-based financier Velocity since Aug 2020. The brand will use the financing to scale its marketing and hiring efforts and to achieve a revenue of Rs 45 crore in FY 2023-24.
“We chose revenue-based financing to retain our company’s autonomy and keep control in our hands. We didn’t want to go the traditional VC route until we had achieved our targeted run rate. We raised our pre-series A only after we had solid proof of concept with our ARR and vision,” said Richa Kapila, co-founder of D’chica.
“Velocity’s support has been monumental in boosting our operations and giving us the tools to reach greater heights. With this funding, we will ramp up our marketing and hiring efforts,” Richa added.
D’Chica was founded in 2019 by sister-in-law duo Vani Chugh Kabra and Richa Kapila. Its core products include women’s innerwear along with a fashion line of sportswear, loungewear, and footwear. The D2C brand closed its financial year 2021-22 with a revenue of Rs 6.6 crore and is set to close the current financial year at 13 crores.
“The teen demographic in India has long been disregarded by traditional apparel brands. However, we spotted a white space to create high-quality utility products that also incorporated up-to-date fashion trends. Now we’ve seen even larger names like Jockey and Puma joining in the action,” said Vani, co-founder of D’chica.
The brand sells its products across e-commerce platforms such as Amazon, Myntra, Ajio, Firstcry, Jabong, and Zivame and also exports its innerwear range to US, UK, and Germany.
Bengaluru-based fintech, Velocity is a revenue-based financier. Since commencing operations in early 2020, the company today has a repeat customer rate of 78%. “We are thrilled to be partnering with D’chica. “We’re confident in the founders and their approach to catering specifically to digital natives – from strategy through business development,” said Abhiroop Medhekar, chief executive officer of Velocity.