Melorra, a direct-to-consumer jewelry startup, has secured $24 million in a new round of funding led by Symphony International Holdings Limited, Value Quest, 9Unicorns, Venture Catalysts, Param Capital, and family offices.
The fresh infusion of capital will be used to improve Melorra’s technology, increase brand awareness, and expand the company’s experience centers across India. Within five years, the company aims to generate $1 billion in revenue.
Melorra has witnessed constant growth since its inception in 2016, according to the company statement, and delivers Hallmarked gold across all 718 Indian districts, whereas the government outlines coverage in only 256 districts. So far, the brand has delivered in almost 2,700 towns in India, with a 200 percent year-on-year growth rate.
The startup also plans to introduce a new collection every week, as well as 75 designs every Friday. Melorra stated that its workforce attends the Paris and Milan Fashion Weeks to select 26 micro-trends presented by global fashion firms.
Melorra, founded by Saroja Yeramilli and Krishna Kumar, in 2016, operates an online jewelry marketplace that specializes in contemporary jewelry. The D2C company delivers “trendy and lightweight” jewelry that complements minimalism. Melorra differentiates itself from the competition and well-established jewelry manufacturers by launching innovative, light gold jewelry designs that are Bureau of Indian Standards approved. In the near future, the company plans to launch an international website.
The funding comes a year after the company secured $12.5 million from Singapore-based Symphony Asia, Lightbox Ventures, and Alteria Capital. Symphony Holdings made an $8.9 million debt investment in the firm last year. In 2016, the firm raised $5 million in a seed round.
Saroja Yeramilli, Founder and CEO of Melorra, stated, “Melorra’s journey has been incredibly fulfilling. As a digital-first jewelry player, we have adopted a multi-channel strategy to ensure Melorra is where its customers are. In this light, this funding comes as an affirmation that we continue to lead in the right path. We will be focusing on enhancing our operations and marketing and expansion of our experience center footprint across the country.”
Melorra’s revenue from operations plummeted by more than 400%, from Rs 16.5 crore in FY19 to Rs 89 crore in FY20. The startup’s losses increased by 79.5 percent in FY20, from Rs 33.75 crore to INR 60.60 crore. Melorra’s overall expense increased from Rs 51 crore in FY19 to Rs 150 crore in FY20. The startup has yet to disclose its financial details for FY21.
According to an IBEF report, India exported $25.3 billion worth of gems and jewelry in FY21. The sector is expected to employ almost 8.23 million individuals by 2022, up from 5 million in 2020. The sector represents 7.5 percent of the country’s GDP.