Imagimake Raises Financing From Velocity
The company plans to use these funds to launch new products
Direct-to-consumer (D2C) startup Imagimake on Tuesday announced to have raised an undisclosed round of financing from Velocity.in, a revenue-based financier. This is the second round of financing they have raised from Velocity, having previously also raised INR 4.4 crore in a 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 by Disha Katharani and Ravi Kumar. The idea of Imagimake dawned upon Ravi and Disha when they conducted workshops & camps for kids in 2012 and observed that the parents were very appreciative of the fun learning activities.
“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. We have seen an exponential growth of 8x in the last three and half years. With the 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. 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,” said Ravi Kumar, co-founder, Imagimake.
The startup is gearing up for its next leg of growth with this financing.
"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,” shared Abhiroop Medhekar, co-founder and chief executive officer, Velocity.in.
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 billion by 2024. Further, India’s per capita spending of INR 150-200 per child is also expected to grow exponentially. These macro factors paint an extremely positive picture for Imagimake, the company claims.
"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 the US, Canada, and Mexico," added Disha Katharani, co-founder, Imagimake
Imagimake has been leveraging the Indian government's initiatives to better source their products at more competitive rates and grow their business.