IDG Ventures India, part of the corporate venturing group belonging to the technology and media organisation the International Data Group, invested $3m in India-based online fashion retailer eShakti last week.
eShakti may be based in India but operates in North America, exporting designer clothes to women in custom sizes. eShakti plans to invest the cash in expanding its operations, bringing its services to India and increasing product lines by adding accessories to its clothing line.
TC Meenakshisundaram, managing director of IDG Ventures India, said: "The ability that [eShakti] have shown by gaining traction in a rather difficult and competitive market like the US has been a comforting factor for us. We believe their uniqueness will give them a competitive advantage."
Meenakshisundaram added: "The India market is showing an appetite for global fashion, and online shopping also is growing rapidly. In the US, we are positioned between budget and moderate and we will look at similar positioning in India also."