MUMBAI :Online jewellery brand Melorra said on Wednesday that it has raised $12 million in a Series C round led by existing investor, venture capital firm Lightbox Ventures.
Other investors include the Burman family office, the private investment arm of the promoters of Dabur India, and the Jeejeebhoy family office.
Melorra also raised $2 million in debt from BlackSoil Capital, which provides debt to startups and other firms.
The company sells necklaces, bracelets, rings, and other jewellery items on its website and claims to deliver to 1,300 towns across the country. It caters to the affordable and daily wear jewellery segment, with an average transaction value of ₹20,000, founder and chief executive officer Saroja Yeramilli, said over the phone.
“We see design as our core differentiator. The designs you find on Melorra, you can’t find them anywhere else. Further, in a low margin sector, we are able to maintain high margins because of a differentiated product,” she said.
Melorra achieved gross revenue of about ₹55 crore last fiscal, which it expects to jump to ₹150 crore this fiscal through March, and ₹400 crore next year, Yeramilli said.
The jewellery startup segment, online and offline, has seen rising investor interest, driven by young users seeking affordable, better designed, and innovative products with rapidly changing trends. CaratLane, which counted Tiger Global Management among its investors, was acquired by Tata Group’s Titan Co. Ltd in 2016. Titan invested a further ₹100 crore in the venture this April to increase its stake.
Jewellery retailer BlueStone, backed by firms such as Accel, Saama Capital, and IvyCap Ventures, aims to raise $25 million to expand its offline presence, Mint reported on 12 February.
Despite South Indian states such as Kerala and Tamil Nadu being famous for traditional jewellery and the largest buyers of gold, Melorra sees more user traction from the north and west, which adapt to changes and trends faster. However, Kerala is a fast-growing area for Melorra as well, Yeramalli said.
Among jewellery startups though, both BlueStone and CaratLane focus more on the high end, and more expensive items, as compared to Mellora, which wants to focus only on jewellery that costs less than ₹30,000.