iFashion Group, a Singapore-based fashion B2B venture platform, just raised S$1 million (approx. $736,000) in seed funding.
The investment came from Singapore-based startup accelerator Rimu Group.
Although they did not invest in this recent round of funding, Fatfish Internet Group, a Singapore-based incubator, also backs iFashion Group.
“We have invested significant undisclosed amount and are a major shareholder of iFashion Group, as a corporate founder,” Lau Kin Wai, Fatfish Internet Group’s CEO said in a Deal Street Asia report. “What we have done is not just fee based work for iFashion.”
Founded in 2015, iFashion Group aims to become Singapore’s e-commerce fashion hub delivering a range of B2B and mentorship services from logistics, warehousing, production, financial services to sales fulfillment.
To grow the fashion group plans to use a roll-up acquisition strategy where they acquire several fashion e-commerce startups that are three to five years old with the aim of reducing costs through economies of scale.
The consolidation will likely increase the valuation multiples the business can command as it acquires greater scale and rationalize competition in Singapore’s fragmented fashion e-commerce industry, according to Liz Lee, writer at Deal Street Asia.
As more Asian shoppers go online for their fashion purchases, iFashion Group is looking to achieve growth through collaboration, co-existence and synergistic resource sharing in the online fashion and lifestyle industry, company executives said in a statement.
“As e-commerce volume and traffic increases, these brands will enjoy the various business services and market knowledge provided by iFashion to effectively manage their growth,” Jeneen Goh, iFashion Group managing director, said.