Singapore-headquartered fashion marketplace Zilingo, founded by Indian entrepreneurs Ankiti Bose and Dhruv Kapoor, has raised US $54 million in its Series C round of funding, from existing investors, led by Sofina, Burda Principal Investments and Sequoia Capital India. The company, whose technology centre is in Bengaluru, said it will hire aggressively for engineering and product roles in India.
Zilingo brought Amadeus Capital as the new investor in the round. All existing investors, including American billionaire Tim Draper, SIG, Venturra, Beenext, Manik Arora and others also participated. The funding comes just months after the company had announced a funding of $17 million in September. The total funds raised by the company stand at $82 million.
The southeast Asian market is turning into a battlefield for ecommerce, with Amazon having entered the region and Alibaba recently pumping in an additional $2 billion into ecommerce marketplace Lazada.
“This new round was finalized weeks after the last one and is a ringing endorsement of how much potential the investor group sees in the company. We’re glad to have invested significantly across all rounds the company has raised,” said Shailendra Singh, Managing Director, Sequoia (India) Singapore, said in a statement.
Zilingo, which has about 10,000 small fashion sellers selling through its platform, will use the funds to expand into new markets such as Malaysia and Philippines this year.
Currently, Zilingo sells in Indonesia, Thailand, Singapore and also has supply bases in these countries along with China, Bangladesh, Vietnam and Cambodia. It has about a million monthly users, primarily based in Indonesia.
Zilingo said it currently does not have plans to launch in India.
“We don’t plan to launch in India as of now. The Southeast Asia customer base and market is ripe for disruption and growth. With a higher per capita income, 70+% smartphone penetration and low competition in the fashion vertical, SEA has potential for higher revenues and lower customer acquisition cost than India,” Bose said.
However, the company said its India connection is very strong, citing that the technology that powers the platform is built in India.
“The biggest reason for wanting to build our technology centre here is the ecosystem and the talented tech and product people here in Bengaluru,” Bose said.