Pakistan-based Bagallery raises $900K Pre-Series A funding round

Bagallery, a Pakistan-based beauty and fashion E-commerce platform has successfully closed a $900K Pre-Series A funding round, from Lakson Venture Capital (LVC).

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Bagallery started out in 2013 with simple Facebook and Instagram pages for beauty and fashion products, quickly garnering a large following with their influencer-driven model. Motivated by the enormous demand the husband and wife co-founders, Salman and Mina, launched a native e-commerce platform with dedicated operations and fulfilment teams in 2017. The company has since seen tremendous growth to become the beauty and fashion segment market leader and is ranked among the top E-commerce traffic generators in Pakistan with 94% female visitors.

The Fashion Industry dominates the global B2C E-commerce space with a 30% share in total B2C E-commerce revenues. According to Euromonitor, the beauty & personal care market in Pakistan is projected to be in excess of $30B by 2023. Bagallery focuses on authentic supply for products by entering into partnerships with likes of  Unilever, Procter & Gamble, L’Oreal, Kiko Milano, SheIn et al. This gives Bagallery competitive access to brands sought by its target demographic consumers.

 Mina Salman, Co-Founder of Bagallery said, “We are really excited to have received LVC’s backing at a time when Bagallery is growing rapidly. The funding will allow us to expand to multiple cities in Pakistan by upgrading our technology stack, inventory management systems and logistics partnerships to efficiently scale.”

Faisal Aftab, Managing Partner of Lakson VC said, “The beauty & personal care market in Pakistan is projected to have billions in revenues over the next 5 years. This represents a tremendous opportunity for market leaders like Bagallery, especially at a time where internet adoption in Pakistan has attained critical mass with more than 80 million active users.”

Babar Lakhani, CEO of Lakson Investments added, “Bagallery is in line with our core investment philosophy of supporting strong teams with a proven business model and potential to scale."

Regionally, exit prospects of beauty & fashion E-commerce plays have reaped big returns for investors. UAE-based Namshi was acquired by Emaar Malls PJSC (Noon) in 2017 for $280M. Myntra in India, one of the early players in this space, was acquired by Flipkart in 2014 for $300M. Similarly, Nykaa in India was valued at $723M in 2019, raising $14M from TPG Growth.

Additionally, Faisal Aftab (Managing Partner of LVC) and Babar Lakhani (CEO of LI) have joined Bagallery’s Board of Directors.

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