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Economic Times
3 days ago
- Business
- Economic Times
Quick fashion plays trials with AI to win ‘no return' game
TIL Creatives Startups in the 60-minute fashion delivery segment are betting on features such as 'try and buy' and artificial intelligence (AI)-powered virtual try-ons to tackle high return rates, a key pain point in the segment. These tools are helping increase conversion rates and reduce returns while offering greater flexibility to buyers, said industry executives. Mumbai-based Knot, which recently raised funding from venture capital firm Kae Capital, said partner brands that typically see return rates of about 20% on their direct-to-consumer websites are witnessing sub-1% returns through offline stores, a trend it is now replicating through these digital features. 'Our partner brands, which have offline stores, would typically witness 20% returns on their direct to consumer websites. But for the same purchases on offline stores, the returns are less than 1%. That is the idea. With the 'try and buy' feature, users can make a very decisive purchase at their doorstep,' Archit Nanda, CEO of Knot, told ET. Return rates among users of the company's virtual try-on feature are similarly much lower than the platform's overall user base, he said. Other venture-backed quick fashion delivery startups such as Bengaluru-based Slikk, Mumbai-based Zilo and Gurugram-based Zulu Club are also testing similar features to increase conversions and reduce returns. 'Returns play as big a part as maybe forward delivery does. Because these are expensive products, giving the customer his or her money back also plays a very critical role,' said Akshay Gulati, cofounder and CEO of Slikk. Instant returns Slikk is piloting an 'instant returns' feature where, like its 60-minute delivery service, returns are also completed within an hour. Once a return request is made on the app, a delivery partner picks up the product and refunds the amount instantly. The startup claims its return rate is 40-50% lower than that of traditional marketplaces and that it doesn't charge customers any extra fees for users said they were satisfied with the delivery speed and trial window but pointed out that the app does not provide any return status updates until the product reaches the warehouse."I received my order within 60 minutes and had enough time to try it out. However, after returning the product, I didn't receive any notification in the application until the delivery agent reached the warehouse," said Mohammed Shibili, a working professional based in Bengaluru, who tried Slikk's feature. Also Read: Quick-fashion delivery startups attract fresh VC capital Investor interest Investors tracking the segment estimate that try-and-buy and virtual try-on features can reduce return rates by 15-20 percentage points, translating into substantial cost savings for both platforms and brands.'Features like try and buy are a huge cost save, not just for the platform but also for the brand. The brand otherwise would lose that inventory till it comes back and can't make the sale on it. But now, that's all getting quickly turned around. So, for the brand, it's a win-win situation as well as for the customer where the money is not getting stuck till it gets the returns refunded,' said Sunitha Viswanathan, partner at Kae Capital. Also Read: Blinkit, Zepto pilot returns, exchanges to ace fashion ecommerce Old model, new infrastructure Flipkart-owned fashion etailer Myntra had introduced try and buy back in 2016 to attract traditional shoppers to online retail. However, the feature didn't scale up due to supply chain limitations, according to industry executives.'Back when Myntra launched 'try and buy', there was no hyperlocal delivery infrastructure. Deliveries were through national courier services. That model isn't feasible to try and buy unless you have your own hyperlocal delivery fleet,' the founder of a fashion delivery startup said on condition of founder added that while Myntra operated from large warehouses located on the outskirts of cities, the new-age supply chains are built within cities, allowing faster deliveries and enabling features like try and buy. By the end of last year, Myntra had launched M-Now, an ultra-fast delivery service currently live in Bengaluru, Mumbai and Delhi, with pilots in other cities. The company said daily orders through M-Now doubled in the last quarter. 'Although it's still early, our observations so far suggest that the quick delivery model, with its reduced wait time, attracts high-intent customers, leading to naturally lower return rates,' said a spokesperson for etailer did not confirm whether the try-and-buy feature is being tested under M-Now. Viability concerns persist Despite the benefits, the long-term viability of these features is open to question, experts said.'There is a cost to also providing these services (like try and buy), and whether that becomes viable at all is a question mark at this point of time. I think that's what the concern is, and it has not been that viable,' said Devangshu Dutta, founder of Third Eyesight, a management consulting firm focused on consumer goods and retail added that when platforms offer the try-and-buy feature, delivery executives have to wait while customers try on products, which increases the cost per delivery and reduces the number of deliveries that can be completed. Despite that, some items may still be returned, further impacting operational startups are experimenting with these features mainly on higher-margin products to offset operational costs, Dutta said, as return rates across fashion categories can range from under 10% to as high as 40% for certain items. Also Read: Rapid fashion delivery gathers pace, but long-term viability in question Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. From near bankruptcy to blockbuster drug: How Khorakiwala turned around Wockhardt Can Chyawanprash save Dabur in the age of Shark-Tank startups? Why Air India could loom large on its biggest rival IndiGo's Q1 results Apple has a new Indian-American COO. What it needs might be a new CEO. How India's oil arbitrage has hit the European sanctions wall Central banks' existential crisis — between alchemy and algorithm Short-term valuation headwinds? Yes. Long-term growth potential intact? Yes. Which 'Yes' is more relevant? 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Time of India
16-07-2025
- Business
- Time of India
VCs warm up to quick-fashion delivery startups as Knot, Zulu Club raise fresh capital
Academy Empower your mind, elevate your skills Funding momentum is building up in the quick-fashion delivery space, as investors double down on early-stage startups focused on fast-moving fashion products with shorter turnaround quick-fashion delivery startup Knot has raised a $3 million round led by Kae Capital , with participation from Sparrow Capital, founder Archit Nanda told ET in an interaction. The round also saw participation from the founders of D2C brands Snitch, Souled Store and Bonkers Corner, as well as lab grown diamond jewellery company plans to use the capital to expand beyond Mumbai to cities such as New Delhi, Bengaluru, and Pune, strengthen its product capabilities, and onboard additional partner brands. It was founded earlier this year by Nanda and Rachit Bansal, following a pivot from their previous social networking startup, startup has partnered with more than 70 brands, including Snitch,The Souled Store, The Bear House, and Off fashion commerce platform Zulu Club has also closed $250,000 in funding from early-stage venture capital firm TDV Partners.'Shopping behaviour has fundamentally shifted. Earlier, it was more casual, when people would scroll through a website or walk into a store and figure out an occasion to wear something later. Now, shopping is very event-driven, and moods are shaped by what users see on their Instagram feed,' said comes as new-age brands such as Newme, Slikk, and Snitch, along with ecommerce platforms Myntra, Ajio, and Nykaa , explore ultra-fast delivery for fashion and which offers 60-minute delivery, recently raised $10 million in a round led by Nexus Venture Partners . Snitch secured $40 million from 360 One Asset with plans to enter quick commerce. Meanwhile, omnichannel fashion brand Newme, which targets Gen Z consumers, raised $18 million in a round led by Accel , with participation from existing investors Fireside Ventures and AUM Ventures, as reported by ET.'Quick commerce has revolutionised the way we purchase groceries and essentials and it's extended to a few other categories beyond your daily provisions,' said Sunitha Viswanathan, partner at Kae Capital. 'However, fashion commerce has not been reimagined since the yesteryears when Myntra and others entered the space. It has continued to remain the same.''There needs to be a new platform-led approach. Gen Z cares about tight curation, fast delivery, and quick returns so that their money doesn't get blocked,' she added.
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Business Standard
03-07-2025
- Business
- Business Standard
GobbleCube raises $3.5 million to expand AI tools for consumer brands
GobbleCube, a startup that provides AI tools for consumer brands, has raised $3.5 million in a Pre-Series A funding round led by InfoEdge Ventures, with participation from existing investor Kae Capital. The Bengaluru-based company, which recently exited private beta, has reached $2 million in annual recurring revenue and onboarded more than 200 clients, including Reckitt, Tata Consumer, Nivea, and Johnson & Johnson. With the new capital, GobbleCube plans to deepen its AI capabilities, expand platform coverage, and accelerate its global go-to-market motion. GobbleCube was founded by Manas Gupta, Srikumar Nair, and Nitesh Jindal, former members of the Blinkit leadership team. The platform uses AI to help consumer brands identify revenue gaps and growth opportunities in hyperlocal markets. It has reported 2–3 times sales increases for clients ranging from D2C startups to large enterprises. Its AI platform analyses billions of locality-level data points to help brands move from retrospective analysis to predictive and action-oriented decisions—across pricing, planning, digital visibility, and performance marketing. 'E-commerce and q-commerce are becoming increasingly complex, with brands needing to win at a hyperlocal and platform-specific level across marketplaces like Blinkit, Zepto, and Instamart,' said Kitty Agarwal, Partner at InfoEdge Ventures. Gaurav Chaturvedi, General Partner at Kae Capital, added, 'GobbleCube's ability to drive measurable growth for both emerging D2C brands and large enterprises within weeks signals strong product–market fit.'
Entrepreneur
03-07-2025
- Business
- Entrepreneur
GobbleCube and IORA Ecological Solutions Raise Funding for Growth
The below brands have announced their latest funding rounds. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. GobbleCube Raises USD 3.5 Mn Pre-Series A Funding AI-driven growth copilot GobbleCube has raised USD 3.5 million in a pre-Series A round led by InfoEdge Ventures, with continued backing from Kae Capital. The funds will be used to enhance its AI capabilities, broaden platform features, and accelerate global expansion. Founded in 2023 by Manas Gupta, Srikumar Nair, and Nitesh Jindal, GobbleCube helps consumer brands scale rapidly by analysing billions of hyperlocal data points to identify revenue leaks, demand gaps, and growth opportunities. Its platform has already onboarded 200+ brands, including Reckitt, Tata Consumer, Nivea, and Johnson & Johnson, and achieved USD 2 million in ARR within just nine months of public launch. "Ecommerce and qcommerce are becoming increasingly complex, with brands needing to win at a hyperlocal and platform-specific level across marketplaces like Blinkit, Zepto, and Instamart. GobbleCube gives them the real-time visibility and intelligence needed to drive growth and revenue outcomes," said Kitty Agarwal, Partner at InfoEdge Ventures. Offering AI-powered insights, GobbleCube operates across MENA and LATAM regions and competes with global players like CommerceIQ, Profitero, and NielsenIQ. "GobbleCube's ability to drive measurable growth for both emerging D2C brands and large enterprises within weeks signals strong product-market fit," added Gaurav Chaturvedi of Kae Capital. IORA Ecological Solutions Raises INR 8.5 Cr Debt Funding Iora Ecological Solutions (IORA), a pioneer in Nature-based Solutions (NbS) for climate action and ecosystem restoration, has raised INR 8.5 crore (approx. USD 1 million) in debt funding from Caspian Impact Investments (Caspian Debt). The funds will be used to scale MegCare, IORA's flagship agroforestry and land restoration program in Meghalaya, aiming to rejuvenate degraded landscapes, increase forest cover, and improve rural livelihoods through sustainable practices. Founded in 2009 by Swapan Mehra, IORA is an environmental advisory firm with multidisciplinary expertise in environmental finance, policy, research, and project implementation. It has executed over 200 global projects spanning 20 million hectares across 27 Indian states, 2 UTs, and regions in Southeast Asia, Africa, and South America. "This investment by Caspian Debt, supported by Rabo Foundation, marks an important milestone for the MegCare program," said Sampath Kumar, IAS, Principal Secretary, Government of Meghalaya. "It supports the state's vision to restore lands and empower communities." MegCare is expected to benefit 80,000 smallholder farmers in Meghalaya by linking ecosystem restoration with carbon finance and sustainable income. "This carbon-linked financing model integrates NbS with measurable climate outcomes," said Swapan Mehra, CEO, IORA. Caspian's Sai Pramodh added, "IORA's execution strength makes this a model for impactful climate finance." Rabobank ACORN and Rabo Foundation also supported the initiative, advancing India's path to its 2070 net-zero climate goal.
