Published
Jun 14, 2019
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Craftsvilla in talks with retailers for stake sale

Published
Jun 14, 2019

The ethnic clothing retailer Craftsvilla is in talks with large domestic physical retailers for a stake sale at a valuation of $200 million.
 

Craftsvilla in talks with retailers for stake sale - Craftsvilla- Facebook


The Mumbai-based company is confident that a stake sale to a big retailer will help the company turn profitable in the coming years.
 
Craftsvilla had reported revenue of Rs 31 crore ($4.5 million) for the fiscal year 2018. The company had managed to reduce its losses to Rs 27 crore in FY18 as against Rs 86 crore losses it had reported in the fiscal year 2017.

Craftsvilla had entered the offline market with the opening of its first brick and mortar store in November 2017 in Mumbai and since then has been expanding aggressively across India which had resulted in huge losses forcing the company to slow down its physical expansion plans.
 
“We are talking primarily to big offline retailers since our omni-channel stack and co-retailing model will be of interest to them. We are doing this because we believe we can become profitable if we use synergies on customer acquisition with a big retailer,” Manoj Gupta, founder, Craftsvilla told BusinessLine.
 
Craftsvilla was founded by Manoj Gupta and Monica Gupta in 2011 and retails ethnic clothing and accessories priced in the affordable section of the market. It sells both online and through more than 60 physical stores.

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