D’chica Raises Rs 1.6 Crores From Velocity
Bengaluru, 27th January 2023: Premium apparel & fashion brand D’chica has raised 1.62 Crores from Velocity. since Aug 2020. India’s largest revenue-based financier.D’Chica was founded in 2019 by sister-in-law duo Vani Chugh Kabra & Richa Kapila with a mission to transform the needs of teenage girls as they transition into womanhood. Their core products include trendy and comfy innerwear along with a fashion line of sportswear, loungewear, and footwear.
Since its launch just a few years back, the D2C brand has soared to incredible heights. Closing their financial year 2021-22 with an impressive Rs 6.6 crore in revenue, the teen’s essentials & utility-based fashion startup is set to close the current financial year at 13 crores.
D’chica brand has also won multiple Mom’s choice and Business growth awards, including the prestigious TimeSheUnltd Award, for their innovative designs and remarkable business growth. The brand has a strong presence across e-commerce platforms such as Amazon, Myntra, Ajio, Firstcry, Jabong, Zivame, etc, and exports its innerwear range to US, UK & Germany as well. The brand kicked off its offline operations in Delhi NCR & UP in January.
According to the founders, at D’chica, they strive to balance the perfect combination of what teenagers love and relate to and what their mothers would want to let them swipe their cards for.
“The teen demographic in India has long been disregarded by traditional apparel brands. However, we spotted a white space to create high-quality utility products that also incorporated up-to-date fashion trends. Now we’ve seen even larger names like Jockey and Puma joining in the action,” said Vani, Co-founder, D’chica.
Speaking about the growth of her company and recent funding he raised from Velocity, Richa Kapila, Co-founder, D’chica, said, “Our products have been met with an astounding response, not just in metropolitan cities, but across tier-2 and tier-3 towns including Patna, Indore, Vizag, Visakhapatnam, and Shillong as well.”
“We chose revenue-based financing to retain our company’s autonomy and keep control in our hands. We didn’t want to go the traditional VC route until we had achieved our targeted run rate, we raised our pre-series A only after we had a solid proof of concept with our ARR and vision. Velocity’s support has been monumental in boosting our operations and giving us the tools to reach greater heights. With this funding, we will ramp up our marketing and hiring efforts. We strongly believe this investment will take our business further than ever before!” Richa added.
Growing awareness amongst kids regarding comfort and fashion adds further fuel to D’chica’s growth story. According to estimates, India’s kidswear industry is currently worth $16.62 billion and is expected to grow at a CAGR of 5.6% from 2022-2027. Also, teenagers make up about 19% of India’s overall population of children.
Speaking about the round of financing, Abhiroop Medhekar, CEO of Velocity, said, “We are thrilled to be partnering with D’chica. India is home to roughly 19% of adolescents, making it a largely untapped market. We’re confident in the founders and their approach to catering specifically to digital natives – from strategy through business development. We anticipate this exciting collaboration and look forward to supporting D’chica as they continue scaling greater heights!”
Velocity. in, a Bengaluru-based fintech, is India’s largest revenue-based financier. Since commencing operations in early 2020, the fintech company today has a repeat customer rate of 78%. With Rs 3,300 crore of fundable revenues connected to Velocity’s platform, the fintech has already processed 1,000+ D2C investments.