Craftsvilla is an e-commerce store for Indian ethnic clothes, footwear, handcrafted lifestyle products, fashion accessories and home accessories. The company was established in 2011 and headquartered in Mumbai, Maharashtra. Craftsvilla strives to connect local craftsmen and designers straightforwardly to worldwide consumers. It gives the online platform to “Find Unique Indian Products” including Handmade, Vintage, Ethnic, Organic and Natural products from India.
Founders of Craftsvilla
Craftsvilla was established by Manoj Gupta and Monica Gupta. The idea of the company was proposed by Monica Gupta who also happens to be wife of Manoj. Manoj was working as a Principal at an investment firm named Nexus Venture Partners which happens to be the primary investor of Craftsvilla. Manoj is likewise active as the CEO of Craftsvilla. Talking about Monica Gupta, she went to San Diego State University for completing her MS in the accounting. She was CA by profession and now working as the COO of Craftsvilla.
The Idea behind the birth of Craftsvilla
The idea of Craftsvilla began when Monica Gupta (Co-founder) went on an excursion to Kutch in Gujarat. While visiting she found numerous artisans and skilled workers who made awesome creations, still they were finding it tough to earn a good livelihood. When she endeavoured to discover the reason, she came to realize that as these artisans are from rural regions, so they don’t have a clue about the real value of their craft and art in the urban area. Hence, the middlemen who paid them exceptionally low for their creations and they themselves sell the handicraft products at high rates in the market. Monica found this scenario quite disturbing and she decided to give these artisans a platform where they can feature their item straightforwardly to customers with no middlemen involved and thus Craftsvilla was born.
Early days and Struggles
At the point when Manoj exhibited his plan to his family and friends, he got a ton of apathetic criticisms about it. Most expressed that there is no real market for ethnic and there hasn’t been a successful copy of it in any market over the globe. Notwithstanding negative reaction, Manoj still had confidence in his idea and saw an undiscovered market loaded up with opportunities. Soon thereafter, He proceeded with his decision and started Craftsvilla
In 2011, Craftsvilla was launched with 80 employees and 5 workplaces crosswise over India. By 2012, due to difficult circumstances and lack of funding, the team was reduced to 8 people and had just a one room office. Generally, most founders would have given up, however Manoj simply refused to quit. It simply made his will to succeed more grounded. Despite everything he put confidence in himself, his idea and his enthusiastic group of 8 people. In a span of 5 years, Craftsvilla went from a purportedly fizzled startup to a company which is presently valued at $250 million and have in excess of 5 million products in its stock.
At the time of its commencement, Craftsvilla.com was funded by US based Investors: Nexus Venture Partners and Lightspeed Venture Partners It additionally raised Rs 2.3 crore from Nexus and Lightspeed in a first round of financing in 2011. In 2012, both the investors mutually contributed around Rs 8 crore ($1.3 million) in the company’s A series of funding. In April 2015, Craftsvilla raised $18 million (around Rs 113 crore) from Sequoia Capital and others. Global Founders Capital, which is managed and promoted by the Samwer siblings of Rocket Internet, also invested an undisclosed amount in the Craftsvilla.
Growth and Development
Despite the fact that the business had started to come in any case, Manoj understood that one the greatest mistakes they were making was that they were building the company for investors, and not themselves. Subsequently, from that point onwards, they redirected their emphasis on the charts which demonstrated number growth, rather than the establishment of the company. What’s more, from that point forward their numbers represented themselves.
In a short time thereafter; Craftsvilla turned into the only profitable online business platform in India by 2013. Furthermore; they likewise revealed a PAT productivity of 1.2% on their second quarter of 2013 and were currently focusing on a gross sales of Indian $100 million in the FY14 with PAT profitability of near 4%. And, in doing so, Craftsvilla additionally made into the best 5 internet business companies in India by GMV (Gross Merchandise Value) scale.
Furthermore, when we take a look at their current details; in only 6 years, Craftsvilla.com has not just proceeded to turned into the official leader of their domain, yet has likewise recorded itself is as the quickest developing and biggest online marketplace with near 2 million remarkable products from in excess of 12,000 artisans and designers the nation over. Craftsvilla now accounts for more than 100,000 transactions in a month and developing quickly with natural sources contributing 66% of their all-out traffic.
Acquisitions by Craftsvilla
In February 2016 Craftsvilla obtained a Mumbai based logistics company named Sendd to improve and streamline their logistics capabilities. The company presently works under Craftsvilla and have equity in Craftsvilla. Around the same time, Craftsvilla acquired a marketplace for ethnic foods named PlaceofOrigin. established in 2014 and furthermore obtained ladies’ garments rental platform F2SO4.
Craftsvilla Business Model
Craftsvilla focusses around giving budget friendly ethnic products to its customers by expelling the mediator and expanding the vocation of nearby artisans and planners, helping them make/advance their image. The company professes to have in excess of 25 thousand artisans and creators banded together with the company and have in excess of 4 million products to sell. Craftsvilla charges a 20% commission on every sale.
Craftsvilla additionally has tied up with Ministry of Textile, India for e-showcasing of handloom products from little artisans and weavers. Craftsvilla markets Weave smart, an online marketplace that offers handloom weaves from across the India.
The Craftsvilla Journey So Far
The Mumbai-based online ethnic wear stage, which was established in 2011, offers ethnic clothes, footwear, embellishments, and excellence products alongside high quality home stylistic theme products. Both Manoj and Monica mean to associate artisans with potential purchasers through Craftsvilla.
Craftsvilla was propelled in 2012 with seed funding of 10 million dollars. The company began with 80 employees and five workplaces crosswise over India. According to reports, Craftsvilla saw a 6% month on month development in 2013 and 2014. After 2015 company professed to have seen a 10% month on month development and contracted near 200 individuals.
In the previous 5 years, we have extended this stage to give a chance to venders from crosswise over India who influence ethnic products, to be it attire, adornments, home stylistic theme or embellishments, to associate with a large number of purchasers from over the globe. The vision has dependably been to help individuals associate back to their underlying foundations. What’s more, in the course of recent years, we have figured out how to push ahead and draw nearer to our vision.”
Craftsvilla’s experiences while on their way to growth and profit have given them glimpses of success. They are presently more confident than they were earlier ever that they will get successful in the long run. Moreover, in doing as such, Craftsvilla is adding to the development of society and to the achievement of the Sustainable Development objectives as well. Manoj Gupta’s one of its kind e-commerce model might be of extraordinary help and a great motivation for many aspiring entrepreneurs to shape a profitable society friendly organization in the generations to come.