Fan merchandise & customisation platform Bluegape.com claims revenues of $2.5M in FY14; plans to go hybrid

Delhi-based Bluegape.com, a fan merchandise and customisation platform claims that it has generated revenues of Rs 15 crore ($2.5 million) in FY14. The startup further claims to be doing close to 1,000 transactions on a daily basis. The company follows a zero inventory model, wherein it prints products only after getting the order.

"The initial days were extremely tough. The company's funds were in the four figures for quite some time," remembers Sahil Baghla, co-founder, Bluegape. However, in 2012 the startup was selected by TLabs, an accelerator programme run by Times Internet Ltd (TIL). Apart from the mentoring, it also received an Rs 10 lakh cheque from the accelerator.

Post that, the startup also raised an undisclosed amount in angel funding from Aniket Khera (fund manager at Wegmans Financial Services Ltd), Rahul Bhatia (portfolio manager at Willow Investment Management, LLC) and an unnamed internet entrepreneur in May 2013. Earlier this year, it had raised Rs 1.56 crore (around $250,000) from global investors via an online funding platform LetsVenture.com.

"The funds raised are enough for the coming six months," said Baghla, adding that the company is also looking to raise around Rs 45 crore in its Series A round of funding. "We are in talks with a couple of investors from India and Singapore, but will close the round in six months during which we will touch revenues of Rs 3 crore per month," he said.

With this round, the firm plans to go hybrid and open small kiosks across major cities. "We want to make a cluster of five kiosks in each metro city through a mix of company owned and franchises. For the same, we will work closely with Franchise India as soon as we raise the funds," said Baghla.

"People will be able to see our collection and order from the kiosks. The products will then be delivered to their doorsteps," he added. According to him, the fan merchandising industry is now worth more than $200 billion.

The Delhi-based startup was founded in August 2011 by Baghla, Ayush Varshney (CTO) and Akash Rastogi (operations), who were later joined by Shailendra Singh (design). All three founders are IIT-Kanpur alumni. Baghla and Rastogi have also earlier had brief stints with Orbis Biosciences (Baghla) and Reliance (Rastogi), prior to Bluegape.

While the company started as an e-tailer of customised posters, in addition to that, it now also offers e-merchandising solution to brands. In simple words, the site has entered into exclusive partnerships with a number of brands and offers their merchandise on the site. And for users looking to create their own products, the site also offers a customisation option. Targeting customers between the age group of 20-28 years, the company claims to be growing at the rate of 20 per cent month on month. It has a team of 32 employees.

Bluegape competes with small merchandising companies like Chumbak and Happily Unmarried, among others.