Bewakoof, a youth-focused direct-to-consumer (D2C) startup, has launched Bazaar.
In an exclusive interview with ET, co-founder and chief executive Prabhkiran Singh said the company, which develops customized and quirky brands under the same name, wants to host approximately 150 brands on its platform but would also continue to be listed as a brand on other marketplaces.
"This marketplace is launched to help customers discover unique, creative, and fun brands which tend to get lost in large marketplaces algorithms," Singh said.
The company has raised $23 million from investors such as Investcorp, IvyCap, and Spring Marketing Capital.
"We are looking to raise a larger round of $40-$50 million given there is considerable inbound interest and have plans to scale up this marketplace model," Singh said.
Investcorp, IvyCap, and Spring Marketing Capital helped raise Rs 60 crore in August. Bewakoof sells garments, footwear, activewear, innerwear, and beauty goods under the Cosmos brand. It intends to enter the home décor market in the coming fiscal year. Bewakoof's items are accessible on its platform and on Amazon, Myntra, Flipkart, Ajio, Tata Cliq, Nykaa Fashion, and Trell, among others.
"We aim to generate Rs 500 crore brand sales in the next 12 months," Singh said.
Chumbak, Mad overprint, Brown Mocha, Fugazee, Peri Pai, Fighting Fame, Urban Estilo, HueTrap, Style Quotient, Dillinger, Smugglers, Clovia, Noise, boAt, Campus Sutra, Ustraa, Difference of Opinion, and others are among the brands that now sell on its marketplace.
"It is going to be a mix of a product company and a platform play," he said. "If you have a good product, it deserves a good distribution channel."
For the next two to three years, the company will invest up to $10-$15 million each year in its marketplace business. According to Singh, the company would provide logistics and warehousing support to third-party companies via an owned and leased model.
"The market is not what it was a decade back. The ecosystem is much more developed now, and you can scale up faster with the help of third-party providers both for warehousing and logistics," he said.
According to Singh, fashion marketplaces focus more on head-brands and steep deals to increase client transaction value.
"As a result, brands with strong differentiation and expression lose visibility from the relevant customer base and, hence, growth. Bewakoof positions itself as a curated marketplace of like-minded brands that are high on expression tailored for customers who are looking for expressive merchandise at the right value," he added.
Bewakoof sells around 600,000 own-brand products each month.
"Bewakoof.com shares a similar brand ethos with regards to the product offerings for our consumers. The partnership speaks for both the brand's millennial and Gen-Z audience who are always on the lookout for quirky yet durable products," said Vivek Gambhir, CEO of boAt.