Startup GlamCorner Raises $4.2 Million In Funding
The Sydney based clothes-sharing company wants to change the way women think about fashion.
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Series A Capital Raising
In addition to the funding provided by AirTree, GlamCorner has also managed to secure an investment from established retail outfits including Marshall Investments owners of JAG, SABA and Sportscraft. Sass & Bide co-founder Sarah-Jane Clarke; Silicon Valley-based private equity firm Partners for Growth and the Australian Venture Capitalist fund Giant Leap.
This news comes amidst a broader downturn in sales that more traditional retail operators have been experiencing, including Myer and TopShop.
The willingness of Australia’s largest Venture Capital along with many other first-time investors to invest into the retail market shows that opportunities do exist for startups in the retail industry. Provided they are giving customers an offering which meets their needs, in a highly competitive marketplace.
The funds raised from this round will be used to grow the already successful business model including investing in delivery systems and continually expanding the inventory.
The Business Model
The business model adopted by GlamCorner allows customers to hire designer dresses for a range of different occasions. The cost of hiring these are dresses through GlamCorner are 10-15% of the purchase price of these dresses. The company offers next-day shipping across Australia and three hour delivery within Sydney.
GlamCorner is capitalising on the shift in consumer habits where people are more likely to rent a dress for a one-off event instead of purchasing. This trend is reflected locally and internationally through the growing number of companies providing a dress-hire service.
GlamCorner is not the only company in Australia providing these services with competitors including DesignerX, SomethingBorrowed and HerWardrob. However, GlamCorner provides its customers with a much larger inventory compared to its competitors, with over 3000 dresses in available for hire.
GlamCorner founders, Dean Jones and Audrey Khaing-Jones, state that their customer-centric approach combined with their extensive inventory and delivery system set them apart from their competitors. Since 2012, GlamCorner has grown to over 40 employees and has processed $20 million in designer fashion.
The $4.2 million raised for GlamCorner is a major coup for the Sydney based startup, reflecting the growing trend of customers moving away from traditional retailing and embracing a more affordable and accessible way of purchasing clothing.
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Zac is a consultant at Lawpath, Australia’s largest and fastest growing online legal platform. Since joining Lawpath, Zac has assisted 1000s of startups and small business’s with their legal needs.