Direct-to-consumer (D2C) brand The Clownfish has raised an undisclosed amount of financing from Velocity India’s largest revenue-based financier. This is the first round of external financing raised by them.
The Clownfish is a luggage lifestyle brand with products ranging from travel cases, messenger bags to trendy backpacks, shoulder bags, rain gear and more. The venture was co-founded by Mahesh Subbiah and Kushal Bhansali – with an aim to create a brand that resonates with middle-class lifestyle.
“The idea to launch Clownfish came to us while discussing the fact that designer brands are out of reach of middle class consumers due to the high prices. While the pricing served as a hindrance, the desire to own quality, stylish, functional handbags and luggage was very present.“ said Subbiah, Co-founder of The Clownfish.
Co-founder, Kushal Bhansali, believes that handbags are now an essential part of personal styling. He added, “Your backpack is not just for storing your items, beyond the functionality of storing items, it also helps make a style statement.”
The Clownfish is now gearing up for its next phase of growth with this financing. “Our products are seeing growing demand across Tier 1, 2 and 3 cities. An increase in disposable income coupled with higher spending on branded products has resulted in exponential growth for us. We plan to use the funds from Velocity to build our inventory and ramp up our digital marketing efforts. We are looking to achieve 100% year on year growth in the next 5 years.” said Subbiah.
Talking about Velocity, Bhansali added, “We have found the right partner with Velocity, Velocity’s capital enabled us to effectively build inventory just in time for the spike in demand for the festive season. Velocity is the first external partner that we have raised financing from and the entire process was extremely seamless.”
According to market estimates, the overall luggage market in India stood at about Rs. 7,305 Crores in 2020 and is expected to grow at a CAGR of 10.3% till 2025. The Clownfish plans to tap into this growth by leveraging it’s superior quality products and high brand recall.
Speaking about the round of financing, Abhiroop Medhekar, Co-founder & CEO of Velocity, said, “We were able to extend credit based on their focus on margins and impressive growth spurt in a short period of time. We look forward to developing a long standing relationship with them as they scale new heights.”
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Velocity is India’s largest revenue-based financier. We offer up to Rs. 2 crores to online Indian businesses. We currently cater to direct-to-consumer (D2C) and e-commerce brands. To grow your business with us, apply now and get funded within 7 days.