Lesara, online fashion e-tailer, announced it raising $16.8 million in Series B round of funding led by Northzone, Vorwerk Ventures along with existing investors Mangrove Capital and Paua Ventures.
Founded in 2013 and based in Berlin, the startup Lesara acquires goods directly from manufacturers in China and Turkey and sells through its website at low price. It mainly deals with fashion, jewelry, household and other everyday objects. Unlike many other online retailers, it has its own warehouses in Europe and China, handles its customer service and other aspects of e-commerce.
Co-founder and CEO of Roman Kirsch said, “In a nutshell, cross-border commerce and direct sourcing from China has been probably the biggest development in e-commerce over the past 3 years. Alibaba, Wish, Nomorerack/Choxi have all had tremendous success. The issue is that those companies operate as marketplaces, providing a really bad customer experience.”
Kirsch quotes that the reasons behind the failures of marketplace could be 60 day delivery times, products stuck in customs and issues relating to product quality, sizing, customer service, returns and refunds which may create “inconsistent branding and interfere with the buying experience.”
Contrasting to it, Lesara has brought in the best from both. He added, “Great price points and quick time-to-market – the reason why Chinese players are growing so much – paired with great customer experience that makes people actually come back.”
With the fresh funds, Berlin startup intends to expand the business internationally in future and to grow in the existing markets that includes Germany, Italy, Netherlands, Austria and Switzerland. It also plans to bring in more to its 50,000 products into their e-tailer platform.
Another competitive advance, Lesara hold is that they sell items 20% cheaper than the other retailers. “We are cutting out middlemen and sourcing directly from factories. No offline branches – instead working on a lean supply chain from source to end consumer.”