The funding is going to be channeled into bolstering its product catalogue & Supply-chain management including warehouses & transportation. Earlier FirstCry.com secured US$ 4 Million in its first round of funding from SAIF Partners, has tie-ups with with 100 brands like Mattel, Funskool, etc.
Is IDG is aligning towards single-genre web-stores? FirstCry is IDG’s fourth online commerce investment. Interestingly, all the investments have been in single-product retailers. We had reported about Lenskart, which is owned by Valyoo Technologies. Earlier, IDG had also invested in Eshakti, which offers customized, designer clothes only to Women. Even on the technology front IDG chose Vserv, which caters only to mobile markets. Broadly speaking, this specific-products-only approach offers better margins, if they have an aligned strategy feels Manik Arora, the MD IDG Ventures, “We like to invest in online retailers with the potential for profit margins of 20-40% and we believe only vertical portals that sell single categories can offer such margins”.
The investments are part of a 100 Million dollar plan says Ravi Adusumalli, managing partner and India head, SAIF Partners, “We expect to invest around $100 million in India this year”. With the Baby Care market estimated at US$ 5 Billion, no wonder e-stores are opening quickly.