Southeast Asia-based fashion market Zilingo has closed an $18 million Sequence B funding spherical led by Sequoia Capital India and Burda Principal Investments.
Zilingo was based lower than two years in the past by ex Sequoia analyst Ankiti Bose (CEO) and former Yahoo engineer Dhruv Kapoor (CTO). The essential imaginative and prescient is to assist Southeast Asia’s thriving unbiased fashion sellers and boutiques shops develop their companies on-line.
The startup had existed largely beneath the radar till it raised $8 million round one yr in the past. This latest spherical contains participation from present backers Venturra Capital, SIG, Beenext and Wavemaker, in addition to new traders — two angels — Tim Draper and Manik Arora, ex IDG Ventures India head, by way of his household workplace fund.
This new funding is being put to work rising Zilingo’s presence in Southeast Asia, and significantly Indonesia — the area’s largest economic system. The startup mentioned it has grown its income over 10-fold and added 5,000 new retailers through the previous twelve months. It at present ships to eight international locations, with vendor hubs in Thailand, Indonesia, Hong Kong, Korea, Vietnam and Cambodia, with 5 firm places of work.
“A massive a part of this spherical is devoted to rising in Indonesia,” CEO Bose informed TechCrunch in an interview. “There’s no different comparable fashion model, so we most likely have a window of a few yr to make to huge earlier than others comply with.”
Zilingo expanded into Indonesia earlier this yr after Bose relocated to Jakarta to be taught extra concerning the market. Some six months into working there, she’s impressed by the alternatives of the nation.
“I’ve by no means seen a market that’s so able to devour shopper web merchandise,” she mentioned. “We're seeing 85 p.c progress every month, that’s not one thing anybody has seen in different Southeast Asia markets. Individuals spend a bit much less on each transaction, however the conduct is loopy they usually store extra instances.”
“We have been initially actually fearful about logistics, as a result of Indonesia is an archipelago, however it hasn’t been that tough. In case your expectations are appropriately set, it’s an excellent market,” the Zilingo CEO added.
Zilingo founders Ankiti Bose and Dhruv Kapoor
Except for aiming to develop its share of the native market, Zilingo can also be making strikes abroad. It has simply opened a B2B community that can permit fashion sellers in the U.S. and components of Europe to buy gadgets direct from Zilingo at a aggressive worth for native resale.
“There’s demand for that provide outdoors of Southeast Asia,” Bose mentioned. “If you run a boutique in Europe or America, it’s possible you're procuring merchandise from Asia however there are a whole lot of middlemen.”
For now although, the first focus is Southeast Asia at this level.
Bose added that she’s significantly excited to work with Burda, which has emerged as one of many few conventional Sequence B traders in Southeast Asia after hiring ex-GREE investor Albert Shy to head up the region.
“These guys deliver a complete new perspective on fashion and way of life,” she mentioned in reference to Burda’s funding in Etsy and its global media portfolio, which incorporates manufacturers comparable to Elle, Harper’s Bazaar, and InStyle.
“It appears solely yesterday that Zilingo began with a seed spherical from Sequoia India and a lot of the crew primarily based out of the Sequoia incubation area in Bangalore. It's terrific to see how they've progressed in the direction of constructing the main fashion and way of life e-commerce firm in Southeast Asia,” mentioned Shailendra Singh, managing director at Sequoia Capital India — one other Zilingo backer — in a press release.