Yebhi.com (formerly BigShoeBazaar.com) started as an online shoestore and now is a leading online apparels and clothing retailer focusing on branded items. Launched in 2009, it is one of the fastest growing startups in this segment and has got VC funding from Nexus Ventures last year. It has a very clean looking website and is actively using Facebook (has over 175K fans) as a marketing medium. Fashion retail is hotting up as Indians are climbing up the prosperity ladder. This is a startup to watch for. Visit the site

Some of the challenges it could face are:

• Most indians have not warmed up to buying clothes & shoes online. We still want to experience & feel the clothes and finicky about the shades and texture.
• Organized retail is rapidly expanding in India and malls are sprouting all over.  That will compete with ecommerce.
• A number of online competitors, particularly in the deals segment, have come and a few others from the nearby segments like books and gadgets are also moving into apparel. That could cut their margins.
• Credit card penetration is low, though their target segment – urban upper middle class would have one.
• Supply chain infrastructure is pretty poor in India, and it would be interesting how they scale from here.

References:

1. VCCirle

2. Alexa statistics