Online jeweller Velvetcase shifts to online marketplace model

Sensing the greater profit potential in a marketplace model, online jewellery retailer Velvetcase has modified its operations to a marketplace model. The jewellery store, which was earlier catering to buyers of custom made and designer jewellery, has taken on board close to 180 sellers, says ET in this report.

The Mumbai based jewellery store caters to the niche market, specialising in precious jewellery. Velvetcase has added sellers and designers who were operating offline and were in the lookout for an online platform.

Growth drives changes at Velvetcase

Kapil Hetamsaria, one of the co-founders of Velvetcase spoke to ET. He says, “We have witnessed a fourfold growth in the number of orders over the last six months since the pilot was launched.” He also says that with the swelling of Velvetcase’s ranks with more sellers and designers, the choices go up for customers.

Gemfields, Ghanasingh Be True, Golecha Jewels, Popley International Silver Emporium, Samana Studio, among others have already been selling with Velvetcase. New designers like Anmol Jewellers, Bikaneri Jewels, Mirari, Gautam Banerjee, Oro, Neha Lulla Jewellery, and Waman Hari Pethe Jewellers are some of the brands that have joined Velvetcase. The jewellery marketplace ships to about fifteen countries, and has its presence in New York. It has plans to open an office in Hong Kong or Singapore, to reach the Chinese/ APAC market.

Velvetcase provides free shipping within India, and fully insured international shipping. It also provides a 30 day return policy to its buyers. However, the return shipping charges will have to be borne by the customer. It also has a Lifetime Exchange policy, wherein the customers can exchange their old jewellery (bought at Velvetcase) for larger stones or new designs for a cost.

Velvetcase – the journey so far

Velvetcase was co-founded by Kapil Hetamsaria and Runit Shah in 2012. It focussed on creating customised jewellery to suit its buyers’ budgets. Yourstory reported that the jewellery store was selling all its products at 30-50% below the market rates. With PC Jewellers as its chief competitor, the online store looked to outside funding to boost its coffers.

In November 2014, it managed to raise close to Rs. 6 crores in funding. According to this VCircle report, The Chennai Angels (TCA), leading venture capitalists, put in the money. Apart from TCA, Arihant Patni (Nirvana Venture Advisors), Jacob Kurian (New Silk Route Advisors), and Jerry Rao (former Mphasis CEO) chipped in to create Velvetcase’s kitty.

By turning marketplace, the company seems well poised on its way to growth. Whether it will meet its ambitious plans to beat established players like PC Jewellery is for us to wait and watch.