Melorra raises US$12.50 million from marquee investors Symphony Asia, Lightbox Ventures, Alteria Capital and other leading family offices
The brand will use the funding to reach deeper into the markets, improve its technological capabilities, and undertake product upgrades
Melorra, India’s fastest growing lightweight fine jewellery brand designing affordable jewellery for everyday wear has raised US $12.50 mn in an oversubscribed funding round led by from Symphony Asia (one of Asia’s first private equity firms), Lightbox Ventures and Alteria Capital. Others who participated in the round included existing and new family offices of Burman, Jeejeebhoy and others.
Melorra has been a disruptor in the fine, trendy, and lightweight gold jewellery segment ever since it started operations in 2016. The funds will be used for technological innovations, product innovations and brand marketing to grow awareness and position Melorra as the choice of a new generation.
Melorra has been recording accelerated growth in order value and numbers ever since the lockdown was lifted. The brand has also witnessed a 4X increase in both organic and direct traffic compared to last Diwali and the ASP (average selling price) has grown by 40% compared to pre-Covid levels.
Speaking about this, Ms Saroja Yeramilli, Founder and CEO, Melorra, said, “We are happy to raise this round of funding, and with the investor trust in our capabilities. Melorra is operating at positive unit economics and rapidly regaining its pre-COVID level revenues. This can be attributed to the fact that we are a leader in the daily wear lightweight, trendy jewellery segment. The added benefit during the pandemic is that we are available online which helps us address the customer concerns around trust and safety. In light of the increased gold prices, we have also come up with innovations in jewellery. Our customers can get the look and feel of expensive gold jewellery without having to shell out a huge amount since we are using path breaking innovations in the design and manufacture of jewellery”.
Adding further, Ms Yeramilli, said, “Melorra has proved its business model and we continue to improve our offerings. Although raising capital has been tough in the market, funding in this period has re-established the investors belief in the business model and team.
Speaking about this, Mr Anil Thadani, Chairman of Symphony Asia, said, “We are impressed with the work of Saroja Yeramilli and her team at Melorra in creating a differentiated business model for the jewellery sector in India. Melorra has seen strong growth over the past few years, by bringing fast fashion jewellery to the millennial woman. We look forward to supporting the next phase of growth and expansion.”
Adding to this, Mr Siddharth Talwar, co-founder of Lightbox Ventures, said ‘In March when the pandemic hit, like so many other businesses around the world, Melorra saw sales volumes drop drastically, the future of the jewellery market questioned, and online search traffic heavily decrease. But over the past 4 months, they have turned the business on its head, in what’s been nothing short of a masterclass. Not only is their revenue on track to surpass pre-Covid levels, but they’ve done it while cutting their marketing spend by over 50%, and achieving positive unit economics. They are now in a better position than they’ve ever been in their journey to build India’s largest daily wear lightweight gold brand!
Mr. Vinod Murali, Managing Partner, Alteria Capital, said “Consumers are now looking for feel-good factors given the immense frustration due to the COVID-19 pandemic and Melorra offers a unique shopping experience with minimal risk of physical interaction. The company has shown sharp growth over the last few months and the foundation of trust that the brand has built since inception is proving very useful now. We are excited to partner with Saroja and her team and hope that the upcoming Diwali season will be the start of India’s consumption recovery which is important for the entire ecosystem.”
Over the years, Melorra has become a preferred destination to shop for lightweight jewellery. The brand’s TG is the millennial woman and it is redefining the way fine jewellery is being perceived and worn, as a disruptor in the lightweight gold jewellery segment. Melorra’s focus is on innovation and creating jewellery that addresses to the consumer’s needs and aspirations. This and other USPs such as affordable pricing, trendy designs and consumer-friendly policies have made it a brand to reckon with even in Tier 2 and 3 cities. So far, Melorra has delivered to over 1700 towns in the country and made its mark everywhere – from cities with a population of less than 10,000 to those above 1 million.