Mumbai: Gurgaon-based social commerce company Relevant E-Solutions Pvt. Ltd, which operates as Roposo, said on Tuesday that it has raised $5 million from Bertelsmann India Investments (BII), the strategic investment arm of the international media, services and education group, in the second leg of its Series B round.
As part of Series B, the company has raised a total of $15 million—$10 million from Tiger Global Management and $5 million from Bertelsmann. In total, it has raised $21 million since its inception in 2014.
“Last year Tiger made a commitment of $15 million, however there were talks of bringing in an external investor on board. In case we wouldn’t have managed to, Tiger would have put in the entire amount. Over time, we managed to bring Bertelsmann on board,” said Mayank Bhangadia, co-founder of the company, over phone.
Roposo raised $5 million in a round led by Tiger Global in March 2015 as Series A and $1 million from Flipkart co-founder Binny Bansal and seed fund India Quotient in June 2014.
The funding comes at a time when Tiger Global is said to be backing its existing portfolio only with participation of additional investors. On 18 April, home rental company NestAway Technologies Pvt. Ltd raised $30 million in Series C funding led by Tiger Global, and participation of Yuri Milner, founding partner of DST Global and IDG Ventures India.
Mint reported in December that Local Oye, Zo Rooms and CommonFloor were not able to raise additional funds from Tiger Global. In January, online classifieds firm Quikr India Pvt. Ltd bought Tiger-backed real estate portal CommonFloor in a distress sale (deal amount undisclosed) and a month later its second portfolio company Zo Rooms was acquired by Oravel Stays Pvt. Ltd (OYO Rooms), in an all-stock deal.
“We see tremendous promise in Roposo as a social network and as a business model. It has managed to capture immense mindshare in India within a fairly short span since inception. With leaders such as multi-channel network StyleHaul in the US and social network Mogujie in China in the Bertelsmann family, we are excited to now work with Roposo to make it the leading fashion destination in India,” said Pankaj Makkar, managing director with BII, in a statement.
Roposo, which was founded by Bhangadia, Avinash Saxena and Kaushal Shubhank, is looking to use the funds to strengthen its technology, expand its team, develop products, build communities and also expand its existing categories and offerings.
“As part of the monetizing strategy, revenues from advertising shall begin by the end of this year,” said Bhangadia.