The company that is aiming to become a profitable entity with a turnover of Rs 500 crore in the next two years had raised the funds from four PE players. The others are Norwest Venture Partners and Nokia Growth Partners.
"This the third round of funding. We have raised USD 40 million from new as well as existing private equity firms which have already invested in us. Fashionandyou Co-founder and CEO Pearl Uppal said.
She, however, did not disclose shareholding pattern of the firm but said the objective of this round of fund raising is to expand business and become profitable within two years.
The funds would be mobilised to enhance customer service, strengthen existing product categories and add new, besides reaching out to tier II and III, Uppal said.
In December 2010, Fashionandyou had raised USD 8 million and a small seed fund prior to that, she said.
According to Uppal, the portal's shopping club currently has about 30 lakh members, and up to 1.5 lakh transactions are registered every month.
She, however, did not disclose turnover details, citing that it is a private venture.
Asked about the expected sales in future, she said: "We expect to close the current calender year with sales in the range of Rs 150-200 crore and are targetting a turnover mark of Rs 500 crore in the next two years."
Commenting on the expansion plan for the portal she said: "We have just introduced kids category and will soon launch a dedicated home and decor segment."
Fashionandyou that reaches out to consumers in 1,000 cities and towns in India is also considering shipping to countries outside India.
"There is a lot of demand and growth opportunities in India itself, but we might look at international orders as well going ahead. Nothing has been finalised yet," she said.