Whiteboard Capital, Amit Singhal, the former head of Google search; Arjun Vaidya, founder of Dr. Vaidyas, and 25 direct-to-consumer (D2C) founding angels also participated in the round.
The company will invest capital in product development, creative acquisition and engagement and building a founding team of engineers and creative success managers, it said in a statement.
Shouto was founded by former Myntra, Ajio and Amazon directors Maruthy Ramgandhi, Abhishek Handa and Ayyappan Lakshmanan, respectively.
It aims to be a fashion discovery destination for Gen-Z in tier-1 cities.
“The disruption or the massive explosion of D2C brands is a lot of mess for consumers,” Ramgandhi told ET. “You have five large marketplaces, there are about 63-65 fashion brands, of which 40 are funded. Any fashion query or need you encounter; you have options. There is a lot of clutter that creates a need for a discovery platform. ”
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He said the discovery of fashion for young Indians is more difficult than for millennials or the older generation.
“What categories are they looking for? These are mostly new-age categories – street, athleisure, plus-size, sustainable, conscious wear and casual work. If you go to any of these marketplaces – Myntra, Ajio – they do not care of the new-age nuances, “Ramgandhi said.
The company will make use of social media influencers on platforms like Instagram and Pinterest to curate and promote products through live or video trading.
Ramganidhi compared Shouto to US-based LTK, which was valued at over $ 2 billion after raising about $ 300 million from SoftBank’s vision fund.
He said the company will not increase inventory but will direct the audience to respective brand sites. This is the core of Shouto’s business model, as it would generate revenue per share. clicks and sales. It is already affiliated with Zara, H&M, Damensch, Urbanic and other brands.
“We see social and creator-focused shopping startups gaining ground in other markets, especially the United States,” said Ash Lilani, managing partner, Saama. “Shouto’s focus is to have a fusion of both of these approaches to build a fashion destination for young Indians.”