Melorra, the D2C jewellery brand that secured INR 35 Cr in a seed-funding round in 2016 – one of the largest in India, hit rock bottom with zero revenue during the pandemic – yes, zero!
At this time, 150+ investors did not see the potential for recovery and turned down the pitch of founder Saroja Yeramilli. But the gritty Saroja didn’t give up.
“I wanted to build the Zara of the jewellery industry!”
So, Saroja raised INR 70 Cr in debt and kept scaling!
Cut to today, Melorra is thriving with:
In this edition, we’ve taken a dig at how Melorra’s USP of speed in design innovation is one of its primary growth drivers!
How Unique Is This Differentiator of Melorra?
It’s interesting how Saroja thinks. In an edition of Inc42’s D2C Summit, she said, “Never look at competition. Always look at consumers and what they want, and you’ll find all the right cues to scale your brand!”
Saroja wisely pointed out, “Who wears heavy jewellery to the office? No one! Heavy jewellery is made to be kept in bank lockers.”
So, Melorra carved a niche – in a sea of brands like BlueStone, CaratLane, and GIVA, which cater to traditional high-end jewellery buyers, Melorra zeroed in on the pulse of the millennial and GenZ target groups with affordable, lightweight, everyday jewellery—pieces that look chic and are practical for daily wear.
Melorra launches 75+ new designs every Friday – that’s 300+ new designs on the website every month – all at par with global fashion trends. No other jeweller in India comes close!
They even send some folks from their design team to Paris and Milan fashion week to draw inspiration and keep up with what’s trending in the fashion world! Now, that’s one way to lead the industry!
If you’re thinking – ‘how do they manage inventory?’, you’re asking all the right questions! And, before we answer that question, why don’t you explore D2CX – a 12-week live and hybrid program that helps D2C founders with:
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🔹 Access to a community of 100+ emerging D2C founders
Melorra’s Trump Card – A No-Inventory Model!
Dead stock proves to be a nightmare for D2C companies. And, Melorra solved it by eliminating physical inventory altogether!
But this meant Melorra had to solve for Responsiveness To Consumer Demand.
The standard TAT for custom jewellery (design to manufacture) is typically a month. And, this number surges to 3 months during the festive season.
But, Mellora slashed the TAT of jewellery production to just five days, all the while ensuring precision and quality—something unheard of in the industry.
How? By leveraging CAD (Computer Aided Design) and 3D printing!
Melorra’s Jewellery Production Process:
Step 1: Design team creates detailed technical drawings of each piece
Step 2: Using the latest CAD technology, these technical drawings are translated into computer sketches
Step 3: These sketches are listed on the Melorra website
Step 4: Once an order is received, CAD-based computer sketches are converted into virtual 3D models, which are then rendered with real material input.
3D modelling facilitates quick TAT of custom orders.
Why This No-Inventory Model Worked?
Melorra’s revolutionary no-inventory model allows them to operate with agility, lowering risk and keeping operations flexible and scalable.
How? Let’s break it down.
Customisation & Flexibility
Each piece of jewellery is made on-demand. This model enables personalised products without the waste that comes with overproduction.
Lower Overhead Costs
Melorra avoids the massive costs associated with physical inventory. Less space, less risk, and way fewer headaches when managing logistics.
Quick Design Renewals
Melorra introduces new designs at lightning speed without worrying about surplus stock. Fashion trends change fast, and Melorra stays ahead by constantly rolling out fresh, trendy pieces.
Saroja said in an ValueQuest event, “By having a no-inventory model, we only make what a customer requires, which leads to a huge reduction in carbon footprint and being sustainable. Why make it if somebody is not willing to buy it?”.
You Can’t Miss These Complementary Growth Drivers!
Speed isn’t the only pillar of Melorra’s success. The brand combines its fast product cycles with trust levers like hallmarking for gold and SGL or IGI certifications for diamonds.
Targeting an internet-first generation, Saroja was clear she had to tap into their mindset and make buying a delightful experience for them.
Bullish On Innovation
Innovate, and when you do, ensure you’re turning heads. That’s exactly what Melorra did when they launched their gender-neutral jewellery collection in 2021. What was just an experiment turned out to be an actual hit! And since then Melorra has been extremely bullish when it comes to innovations and launching bold collections.
Their featured collections include Frosted Sparkle, Office Siren, Boho Fusion, and Chainmail, amongst 200+ others.
Delighting The Customers
To enhance customer experience, Melorra has opened 26 experience centres all across India. Consumers can scroll through and shortlist designs online (on Melorra’s website or mobile application) and then visit an experience centre to check for quality before making the purchase.
They have optimised their supply chain to produce and ship directly to consumers within 10-12 days of order placement. Also, they cater to customers across 26,000+ pin codes in India, even allowing COD on select locations.
The Graph – How Is Melorra Growing Over The Years?
Melorra is indeed on a fast track to exponential growth, but like any scaling brand, rising expenses are part of the game. In FY22, Melorra’s total revenue surged by 4.6X to INR 364.5 Cr, up from INR 79 Cr in FY21. Impressive, right?
But, here’s the kicker: its expenses also ballooned, jumping to INR 471.3 Cr from INR 140.4 Cr the previous year.
Where’s the money going? Primarily to marketing and customer acquisition costs (CAC). With Bollywood star Shraddha Kapoor on board as the brand ambassador, Melorra’s advertising budget skyrocketed. In FY22 alone, they spent a whopping INR 120 Cr on advertising—a massive 175% jump from INR 43.7 Cr in FY21.
Sure, marketing is expensive, but at the rate Melorra is growing, we wouldn’t be surprised if they reach breakeven soon.
We’ll be keeping a close watch on this fast-moving jewellery disruptor!