Singapore-headquartered online streetwear marketplace Novelship has secured $9.5 million in a Series B funding round led by venture capital (VC) firms East Ventures, iGlobe Partners, and GSR Ventures—which are based in Indonesia, Singapore, and China, respectively.
In a statement on Thursday, Novelship said the capital will be used to amplify its brand presence across Southeast Asia, including enhancing its logistics capabilities, refining authentication processes, expanding in-house collections, and optimising environmentally-conscious delivery process.
“As collectors’ priorities shift towards accessibility, efficiency, and integrity, Novelship stands firm in our dedication to enhance these aspects on our platform,” said Richard Xia, co-founder and CEO of Novelship.
Founded in 2018, Novelship recently collaborated with American rapper Snoop Dogg to expand its collection and has also launched new in-house products such as its own branded t-shirts, socks, shoelaces, and shoe sole protectors.
It is also actively diversifying its collections to serve a growing female market.
Novelship said that as its customer base expands, it is working to source for more supplies, leading to an estimated 150% overall listing growth in the fiscal year 2022, with an exceptional 140% surge in women-centric stock-keeping units (SKUs) alone.
The company added that it has been growing at a compound annual growth rate (CAGR) of 37% in revenue and 55% in transactions.
Willson Cuaca, co-founder and Managing partner at East Ventures, said: “We are happy to continue our support of Novelship‘s journey as they redefine the market and deliver unparalleled value to sneakers and collectible enthusiasts in the region.”
“Novelship has been proven as a one-stop marketplace to fulfil the desires of collectors. We also take great pride in witnessing how Novelship incorporates sustainable practices into its operations. We look forward to experiencing more excitement in the near future,” he added.
In May this year, East Ventures announced raising $250 million in the first and final close of its latest fund, Growth Plus, which brought its total funds raised to date to $835 million.
The firm currently has more than $1 billion in assets under management (AUM) and attracted $6.7 billion in follow-on funding for its portfolio companies last year. It has invested in over 300 companies in Southeast Asia.
Its portfolio includes some of Indonesia’s biggest unicorns, including Tokopedia and Traveloka. Other notable companies in its portfolio include Ruangguru, SIRCLO, Kudo (acquired by Grab), Loket (acquired by Gojek), Tech in Asia, Xendit, IDN Media, MokaPOS (acquired by Gojek), ShopBack, KoinWorks, Waresix, and Sociolla.