High Street Essentials (HSE), the parent company of FabAlley and Indya has raised Rs 8 crore ($1.1 million) in venture debt from Trifecta Capital. The company will use these funds to expand its offline presence by increasing EBO count for both Faballey and Indya and doubling shop-in-shops to over 650 in the next 12-18 months. The capital expenditure required to fund this growth will be raised through debt since this reduces the cost of capital and improves return on equity.
This is the second round of debt infusion by Trifecta into the company. HSE had raised its first venture debt round of Rs 5 crore from Trifecta Capital in January 2018. The company had raised Rs 60 crore in Series B funding from SAIF Partners in December 2018. Noida-based HSE was started in 2012 by two childhood friends Shivani Poddar and Tanvi Malik with fast fashion brand, FabAlley. In 2016, the duo launched Indya, an ethnic-fusion brand, in response to the growing demand for contemporary Indian wear.
During the current financial year, HSE strengthened its retail footprint by opening 10 new Indya stores and five FabAlley stores across the country. For the fiscal year 2019, HSE had reported a profit of Rs 1 crore on revenue of Rs 90 crore.