B&E | GRANA Announces Series A Round, Raising US $10 million with Alibaba Entrepreneurs Fund

Hong Kong-based fashion start-up experiences over 15% month-on-month sales growth and expands its market presence with new funding.

Hong Kong-based fashion start-up experiences over 15% month-on-month sales growth and expands its market presence with new funding.    

B&E | GRANA Announces Series A Round, Raising US $10 million with Alibaba Entrepreneurs Fund

GRANA, an international direct-to-consumer eCommerce fashion e-tailer, today announced it is raising US $10 million for its Series A round led by Alibaba Group under The Hong Kong Entrepreneurs Fund, with participation from existing investors Golden Gate Ventures, and Hong Kong-based MindWorks Ventures to support expansion plans in its highest growth market - the US and build out its product offering into new categories with sportswear, bags and accessories.    

Since launching in October 2014, the start-up company continues to experience over 15% month-on-month growth in sales for its modern twist on timeless wardrobe essentials. Following the Q1 announcement of its US $6 million in seed funding earlier this year, led by Golden Gate Ventures, MindWorks and Bluebell Group, the GRANA team will move into a new 18,000 square-foot centralized warehouse in Hong Kong this month to manage business growth and plans to double its headcount to 100 employees by the end of 2017.     

"It all started in a 500 square-foot warehouse and now we're moving into a bigger warehouse and celebrating our two-year anniversary this month, it's a really exciting time for us. Our success is a testament to the amazing and talented in-house team, who have dedicated themselves to making quality products and creating a brand that drives so much word-of-mouth and online advocacy for us. We're honoured to have Alibaba as a lead investor and the continued support from existing strategic investors", said Luke Grana, CEO and Founder of GRANA.    

With the new round of funding, GRANA plans to expand its presence in the US, its largest international market through setting up its first pop-up showroom experience in New York for customers to try offline and buy online, as well as build a local New York team to cater for its increasing customer base in the market. To help strengthen GRANA's market reach in Asia, Alibaba is also partnering with GRANA for its market entry plan into mainland China.    

"GRANA has proved itself as an international eCommerce brand that uses a data driven approach to optimise its business offering and create an excellent customer experience. They have a creative and energetic business culture which really resonates across their omni-channel and is indicative through their rapid growth. It is a very promising start-up and we are looking forward to building a long term partnership", said Ms Cindy Chow, Executive Director at The Hong Kong Entrepreneurs Fund.     

The fast-growing company currently ships directly to customers across 12 countries from its centralised warehouse in Hong Kong within 1-2 days. GRANA clothing is known for its highly constructed no label wardrobe essentials, using the finest fabrics from around the world, and honest pricing - these include Peruvian Pima T-Shirts from US $15, Chinese silk tops from US $29 through to Mongolian Cashmere Sweaters ranging from US $99.    

"I have seen the GRANA team grow from two co-founders, to a large growing team with an office culture that mirrors the enthusiasm of their most passionate customers. GRANA has re-imagined how to build a global brand, city by city, mixing pop-up stores and a simple online platform to build a massive community following. This latest round confirms our belief in their potential in the global market", said Vinnie Lauria, Managing Partner at Golden Gate Ventures.    

Worldwide retail eCommerce sales is forecasted to reach US $3.6 trillion in 2019 according to eMarketer, reporting that Asia Pacific is projected to account for 41% of global retail eCommerce sales followed by 21% from North America. To further drive Asia Pacific as a global eCommerce hub, its business strategy will focus on looking into new markets for shipping with DHL and opening pop-up locations in key markets over the next 12 months.    

"We have a very strong partnership with GRANA and enjoy working with them as a global shipping partner. Since conducting its beta launch in 2014, the shipment volume we have handled has been growing exponentially. As an International Specialist, we provided time definite delivery for GRANA to eight countries when it first launched.  Today, the express delivery has expanded to twelve countries with more to come. The new funding is a great accomplishment for such a young company", said Ecila Chan, Vice President Commercial at DHL Express Hong Kong.    

The Series A round will close at the end of October. GRANA also plans to debut its new Italian shirting, silk bomber jackets and transitional knitwear collection this season.     

About Hong Kong Entrepreneurs Fund    

Alibaba Hong Kong Entrepreneurs Fund is a not-for-profit initiative launched by Alibaba Group in 2015. The Fund's mission is to help Hong Kong-based entrepreneurs and young people realize their dreams and visions for their businesses and communities. Currently, the Fund runs two programs to fulfil this mission. The Investment Program provides Hong Kong-based entrepreneurs with investment capital and strategic guidance to help them grow their businesses and penetrate global markets by utilizing Alibaba's vast ecosystem. The Internship Program offers Hong Kong graduates and students from tertiary institutions a chance to learn with us by providing valuable internship opportunities at Alibaba Group and our affiliate companies.    

About GRANA 

GRANA is a direct-to-consumer online fashion brand designing wardrobe essentials in-house, using the finest fabrics from around the world, available at www.Grana.com. Strategically headquartered in Hong Kong, GRANA was founded by Luke Grana and Pieter Paul Wittgen in October 2014. GRANA has global shipping directly to 12 countries within 1-2 days. Countries include Australia, United States, Singapore, Hong Kong, Belgium, France, Germany, Italy, Netherlands, New Zealand, Spain and United Kingdom.    

(c) 2016 Thomson Reuters
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IndraStra Global: B&E | GRANA Announces Series A Round, Raising US $10 million with Alibaba Entrepreneurs Fund
B&E | GRANA Announces Series A Round, Raising US $10 million with Alibaba Entrepreneurs Fund
Hong Kong-based fashion start-up experiences over 15% month-on-month sales growth and expands its market presence with new funding.
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IndraStra Global
https://www.indrastra.com/2016/10/BE-GRANA-Announces-Series-A-round-002-10-2016-0012.html
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