Elanic, an Indian marketplace for used clothes, has raised seed round of funding led by Singapore-based Japanese venture capital firm Rebright Partners, Tracxn Labs and Angel investors Aneesh Reddy, founder of Capillary Technologies. The financial terms of the deal remain undisclosed.
Based in Bengaluru and founded by Palkush Rai Chawla, Aditi Rohan and Abhilash Narhari, Elanic serves as a C2C platform to help the user sell or buy pre-owned clothes, bags, shoes and accessories. The startup claims to simplify and standardize transactions in India’s less developed used fashion marketplace. It is a social peer-to-peer marketplace for gently used items.
The startup targets to provide a leading shopping experience where women folks come together to buy and sell fashion. As the website is currently in a beta phase, it is operational in Bangalore only. Apart from web, the startup features brands from well-known global and Indian labels like Ritu Kumar and Anamika Khanna. Now with the new funds, the company is planning to open up all over India.
Palkush Rai Chawla said, “Getting over a billion people to not hoard and start selling is a large-scale problem. While online classified work for some categories, they do not really work for fashion.” The items are checked before shipping off to buyer which solves the trust deficit attached with pre-owned fashion apparel for women.
Elanic has Android app that allows the users to upload pictures of an item for sale. Then, once sold, it is picked up by Elanic logistics team for inspection on level of damage, size and brand authenticity and then dispatched to the buyer. One the item is shipped, the amount will be credited to the seller’s account. The company makes revenue by taking 25% cut on each sale. The app has a wide range of options to browse the closets of several women on their portal and allows the buyer to buy the item of interest. Sellers can sell items from their closet by making a listing in less than a minute. However, the app is currently available on the invite-basis only.
It is quite common for most of the women to not use large part of the wardrobe for more than three or four times, and Elanic’s marketplace is modeled on the concept of sharing economy. In a statement, Abhishek Goyal from TracxnLabs said, “As sharing economy sweeps the market, this is a large inefficiency ready to be disrupted.”
Takeshi Ebihara, founding partner of Rebright Partners said, “We are excited to support the social economy in emerging markets and believe consumer-to-consumer commerce will be the next wave, especially for mobile-first consumers. Rebright is very bullish about India and is investing in dynamic ideas which are aimed at solving problems innovatively in the local markets.”