Online lingerie retailer Zivame is set to raise $40 million from Malaysian sovereign wealth fund Khazanah Nasional Berhad and Mumbai-based investment firm Zodius Capital. The company will use the latest round to invest in discounting, expanding its private label and marketing. The deal would value the 4 year-old company at $100 million.
Zivame initially started out as an aggregator of lingerie brands like Enamor, Wonderbra, Jockey, and Amante. “I realized that lingerie as a category in India is under-served. There is unavailability of sizes, social discomfort and very poor market penetration.”, says Richa Kar, the founder. “There is so much of a social discomfort that lingerie shopping gets reduced to a 5 min hurried chore. That is when I conceptualized this offering of a lingerie store where women can understand their lingerie needs, browse through styles, order for their right size and get the their order delivered at their doorstep without any embarrassment. Zivame is born out of a vision to have every Indian woman access to the right innerwear in an environment that is consultative, inclusive and friendly.”
The lingerie/sleepwear market in India is currently valued at $3 billion, of which around 1% is online. In five years, it is projected to reach $5 billion. Zivame had last raised funding of about $5 million in late 2014 from existing investors Unilazer Ventures, IDG Ventures and Kalaari Capital.
The company had had started out from a one bedroom apartment in August 2011. It currently has over 200 employees, and women outnumber men 3:1. Kar, who aims to reach a $1 billion valuation in 5-7 years, has degrees from BITS Pilani and NMIMS.