Direct-to-consumer (D2C) startup Imagimake has raised an undisclosed round of financing from Velocity.in, India's largest revenue-based financier. This is the second round of financing they have raised from Velocity, having previously also raised Rs 4.4 crore in pre-series A funding round from Roha Investment Managers and angel investor Saumil Shah.
Imagimake manufactures and distributes a range of innovative products - educational toys, games, puzzles, and 3D model-making sets - that help children in learning, education, and creative development. The fun and constructive play-tools facilitate holistic child development. The venture is co-founded byDisha Katharani & Ravi Kumar. The idea of Imagimake dawned upon Ravi and Disha when they conducted workshops & camps in for kids in 2012, and observed that the parents were very appreciative of the fun learning activities.
Ravi Kumar said, "Over the last couple of years, we have found excellent acceptance for our products all over the world and have also won several awards and accolades including featuring in the Holiday Toy List in the US. We now want to build on this strong foundation to scale our business and launch new product lines."
The startup is gearing up for its next leg of growth with this financing. "With increasing propensity to spend and more discerning millennials entering parenthood, we believe that the market for our educational & creative products is ripe for growth. We plan to use the funds from Velocity.in to finance our new line of products" he added.
The Indian government's initiatives such as remittance on exports and establishment of special economic zones are expected to propel the Indian toy market to a size of $2-3 bn by 2024. Further, India's per capita spending of Rs 150-200 per child is also expected to grow exponentially. These macro factors paint an extremely positive picture for Imagimake.
Imagimake has been leveraging the government's initiatives to better source their products at more competitive rates and grow their business. "We have seen an exponential growth of 8x in the last three and half years. With the funds from Velocity, we aim to double these revenues in 2021, as compared to the previous fiscal year. Our goal is to be a leading player in the edutainment segment through innovative and creative offerings across India," says Ravi.
Speaking about the round of financing Abhiroop Medhekar, Co-founder & CEO of Velocity.in said "We are delighted to finance Imagimake and be a part of their growth journey. We were impressed by their growth rate, focus on margins and the fact that their product has found acceptance in western markets as well. Imagimake has a good track record and is poised to double down on the market opportunity."
Velocity.in, a Bengaluru-based fintech, is India's largest revenue-based financier. The company commenced operations in early 2020 and has since worked with over 500 e-commerce businesses.
"We want to expand our manufacturing in India and constantly need working capital to scale our business. Thanks to Velocity.in, we have ready access to funding that can be raised without diluting equity or pledging our assets. We will be using this financing to expand our product lines and fulfil unmet demand in India and other international markets like US, Canada and Mexico." added Disha.