
According to a press release, the e-commerce fashion startup Beyoung has received Rs. 40 crore via the revenue-based financing platform Klub. With the launch of more than 100 stores in Tier-2 and Tier-3 cities in 2023, the fashion company claimed that this financing will be used to increase its offline presence throughout the nation. Additionally, the company intends to use the funds for marketing initiatives, technological advancements, and logistics enhancements.
Shivam Soni, founder and CEO of Beyoung said, “The clothing industry in India is incredibly vast, but unfortunately, the stereotype is that better quality means higher prices. At Beyoung, we aim to challenge this stereotype by producing a range of mass-affordable clothing that is accessible even to smaller cities.”
The company said that since receiving its initial round of funding from Klub, its annualised revenue rate (ARR) has increased threefold to Rs. 150 crore. It now intends to reach Rs. 500 crore in ARR by 2026. The firm, which was established in 2018, focuses on providing young adults with fashionable yet cheap clothing and accessories.
“With e-commerce in India projected to reach US $ 200 billion by 2026, the fashion industry has been witnessing a surge in online retail, now accounting for over 35 per cent of total fashion sales in the country,” said Klub’s Capital Platform vice president and head Sudharsan Venkatakrishnan.
“This trend is expected to continue, with a CAGR [compound annual growth rate] of 22 per cent for online fashion retail over the next five years. Klub is thrilled to provide capital to Beyoung, which is a vibrant brand in this segment, and enable them to invest in technology, logistics, and marketing,” he added.