Hong Kong’s Grana secures US$3.5 million to ‘further disrupt the online clothing market’ from LA to Shanghai
Hong Kong-based online clothing store Grana has secured US$3.5 million, taking its total seed funding to US$6 million as the company aims to add new product lines and expand its presence in international markets.
Singapore-based Golden Gate Ventures led the funding round. Other investors include MindWorks Ventures and Hong Kong’s Bluebell Group.
Founded in 2014, Grana positions itself as an online-only retailer that sells luxury clothing at affordable prices. Fabrics it uses include silk sourced from China, cashmere from Mongolia as well as Peruvian pima cotton.
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The company said the new round of funding will allow it to expand to markets such as China, as well as support further growth in the United States. It currently ships to 14 countries, including Singapore, Canada, Germany and Italy.
“The support is critical to our US expansion, a priority market that already represents 20 per cent of our global sales,” said Grana CEO Luke Grana in a statement on Tuesday.
“This new investment allows us to further disrupt the online clothing market.”
The company also said in a statement that more product lines are in the pipeline, including leather products, activewear and undergarments.
Although Grana customers can only place orders online, the company has adopted an offline-to-online approach by setting up a series of temporary pop-up stores in its markets.
Pop-up stores showcase Grana’s line of products, and customers can try them on to see how that sweater or other garment looks before placing an order online at an iMac computer in-store. The pop-ups typically last for several months.
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Last September, Grana opened its first permanent brick-and-mortar “fitting room” in Hong Kong’s trendy Sheung Wan district. The 1,300 sq ft space operates in a similar way to its pop-up stores.
Grana’s strategy mirrors that of US-based retailers such as Bonobos. Bonobos’ customers can make an appointment to have a member of staff recommend the right fit and guide them through the online shopping process at its offline stores.
Grana also plans to use its newly-acquired funds to grow its team globally. It has over 40 employees in Hong Kong and recently hired an undisclosed number of staff in San Francisco.