An interesting gifting platform startup announced a funding of USD 27 million
The gifting platform has raised funds in a round of funding. What an exciting and innovative piece of news it is.
Let us talk about the gifting platform industry and the startups working in it. Explaining what a gifting platform is, it is a type of automated system that is used for selecting, storing, packing, and shipping gifts and custom swag items to the customers, clients, employees, or prospects. The market for the gifting industry can be divided into festive, personal, and corporate gifting.
The majority portion of the gifting industry is taken by corporate industry which is 80% of the industry and consumer gifting holds the remaining 20% of the share. The gifting companies bring in creative packaging, personalized notes, boxes having special engraving, which in turn helps in bringing the experience of buying gifts intimate, thus increasing the market of gifts in the country.
Now looking at the trends and the analytics, the demands for the online gift companies are set to increase from tier II, tier III cities, and even some small towns. The market is now becoming more varied and differentiated with its offerings and new companies are entering the industry now.
The industry of gift shops and card stores in the US was valued at USD 14 billion in the year 2020. Corporate gifting in the US was of the value USD 242 billion in the year 2021, which is around 17% of the total gifting market of the US. The size of the Indian corporate and personalized gifting industry was of the value INR 250000 crore in the year 2021.
Let us now have a discussion on the funding of a gifting platform, which is a very big name in itself, that has taken place recently.
Announcement of funding of a gifting platform startup
The gifting platform startup, Ferns and Petals, has raised funds worth USD 27 million, which is equivalent to INR 200 crore, as announced on March 12, 2022. This round of funding that has taken place was the first institutional round of funding and was led by Lighthouse India Fund III. The startup plans to use the funds raised in increasing and enhancing the experience of delivery for its customers. The startup also plans to use a portion of the funds raised in improving its system and its technology platform.
About the gifting platform startup that has announced its funding
The gifting platform startup, Ferns and Petals was founded in the year 1994 by Vikas Gutgutia and has its headquarters in New Delhi, India. The startup has become the largest flower and gifts retailer in India and one of the largest flower retailers in the world. The first shop of the startup was opened in South Extension, Delhi, and it took the startup time of nine years to break even in the year 2003.
The startup which initially was started as a florist has now expanded to different areas like cakes, plants, cosmetics, spas, perfumes, personalized gifts, experiential gifts, and many others. The startup in total is offering more than 40000 products. The startup according to the founder, Vikas Gutgutia, is also planning to add liquor in its category of offerings, in the areas where there will be relaxation on the norms of the state governments.
The startup recently has started the concept of personalized wishes by celebrities and influencers on its platform. The celebrities include Delnaaz Irani, Sneha Ullal, Salim Merchant, and many others.
The startup conducts its operations through a franchise model and has a network of more than 400 stores in more than 120 cities across the country. Besides India, the startup is also operational in UAE, Singapore, and Qatar. The startup is planning to expand to Saudi Arabia, Malaysia, Indonesia, the Phillippines, and the UK. The startup in the Financial year 2021 and 2022 had a turnover of around INR 600 crore and has had a growth rate of more than 40 percent.
About Lighthouse India Fund III
With headquarters in Mumbai, Maharashtra, Lighthouse Fund III is in the business of helping build successful enterprises. It does that by adding value to the existing businesses and turning new ideas into opportunities, thus helping the companies grow and make a lasting impact.
The portfolio of Lighthouse Fund III consists of companies like Nykaa, Bikaji, UNIBIC, FabIndia, WOW Momo, XSEED, Indian Herbs, Stylam, CERA, Capital Trust, UNIBIC, and many others.
What has been said about the deal of funding?
The founder of the startup, Ferns, and Petals, Vikas Gutgutia, has made a statement according to which gifting is all about delight and the startup is engaged in providing the best experience to its customers. He then said that the startup is very excited to come into partnership with Lighthouse and is looking forward to learning from the deep consumer insights of Lighthouse which are developed through a focused investment approach.
The startup brings happiness and surprises during special occasions. We wish the startup a stroke of good luck and hope it has a bright and successful future ahead.
