Direct-to-consumer (D2C) start-up The Clownfish on Friday announced that it has raised an undisclosed amount from Velocity.in, one of India's largest revenue-based financiers.
This is the first round of external financing raised by the start-up.
The Clownfish is a luggage lifestyle brand with products ranging from travel briefcases, messenger bags to trendy backpacks, sling bags, rainwear 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 company said.
"The idea of launching Clownfish dawned on us while discussing how designer brands are out of reach for middle-class consumers due to steep pricing. While the pricing served as a hindrance, the desire to own quality, stylish, functional handbags and luggage was very present." said Subbiah, Co-founder, The Clownfish.
Co-founder, Bhansali added, "Your backpack is not just for storing your items, beyond the functionality of storing items, it also helps make a style statement."
The brand 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.in to build our inventory and ramp up our digital marketing efforts. We are looking to achieve 100 per cent year on year growth in the next five years," Subbiah added.
Bhansali further said, "Velocity’s capital enabled us to effectively build inventory just in time for the spike in demand during the festive season. Velocity is the first external partner that we have raised financing from, and the entire process was extremely seamless."
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."