Jaypore, the online retailer which raised nearly Rs 50 crore from social impact fund Aavishkaar in 2016, expects to double its revenue to Rs 100 crore this year and break even in 2020. It has initiated conversations with investors to raise the next round of funding worth $10 million. Jaypore curates premium products from brands such as Ritu Kumar and Shades of India as well as traditional products such as Kashmiri Kani shawls and paithani saris painstakingly woven by weavers. Its designs are a mix of ethnic and contemporary, which makes it a one-stop shop for jewellery for all occasions.
The website gets its name from the city of Jaipur. It was started by entrepreneurs Puneet Chawla and Shilpa Sharma to present the best-kept secrets of Indian craft and design to a global audience. Jaypore has successfully managed to build a loyal clientele in the six years since it began. The e-tailer gets one million visits a month and has a repeat customer base of 70 per cent which, according to experts, is quite substantial for a niche player.
The online store works on a curated platform— sourcing apparel, jewellery, lifestyle accessories, and home decor from about 250 self-help groups, co-operatives and master craftsmen, who in turn employ about 100,000 artisans. It launches 6-10 new collections every day to keep its exclusivity and novelty quotient. Its first brick and mortar store was launched in New Delhi in March 2018. The store broke even in the second month of operations and expects a payback on investments in the next 12-18 months. Jaypore’s second store was launched in September in Bengaluru. The e-tailer plans to open four-eight stores across the top four metros over the next 12 months.
Offline stores to push up order value
The e-commerce company operates at gross margins of nearly 40 per cent across products and categories. As per estimates, most offline retailers have gross margins of 50 per cent. Luxury products tend to have even higher gross margins, sometimes as much as 80 per cent as these brands often have a mark-up as high as five times the costs. A premium brand, Jaypore currently clocks an average deal value of Rs 3,500-4,000 online, compared to an industry average of Rs 1,000- 1,200. With offline stores, it expects the order value to increase by an additional 20-25 per cent.
With its second store in Bengaluru, Jaypore has forayed into furniture. Each piece of this furniture has an element of craft to it. For example, there are ikat silk fabric upholstery chairs, kilim chairs and beds with unique old-world woven headrests.
Jaypore is planning to add more categories in home furnishings, apparel, and jewellery. The company also plans to open four-eight stores over the next 12 months. While India is the core focus for Jaypore, it also has an overseas business in countries such as the US, the UK, Malaysia, and Dubai. With 30 per cent of its revenue coming from overseas sales, Jaypore’s growth strategy includes expanding into newer product categories such as personal care.