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Why a Nordstrom Breakthrough Can Be the Right Time to Raise

Rare Ivy
Rare IvyMarketing Manager
11 min read
Why a Nordstrom Breakthrough Can Be the Right Time to Raise

From Queens to Nordstrom: the pop-up that changed everything

Before holiCHIC landed on a Nordstrom sales floor, Megha Rao was just a finance sales professional in Queens who kept running into the same problem: the kind of clothes she wanted to wear did not seem to exist anywhere nearby, at least not in the form she had in her head. So she made them herself.

And the earliest pieces were personal and a little bit improvised, which is often how the best small brands begin. Rao started combining her mother’s saris with denim and leather, turning family fabric into something she could actually wear out of the house. Friends noticed, and did relatives. Then came people beyond her immediate circle, which is usually when a hobby starts behaving like a business, whether the founder’s ready for that or not.

A brand does not usually begin with a grand plan. More often, it starts with one person making the thing they wish they could buy.

For nearly ten years, Rao kept holiCHIC moving on her own. That meant doing the unglamorous parts herself, making decisions without a safety net and learning the business one order, one customer, and one mistake at a time. It also meant she had plenty of time to figure out what the brand was and what it wasn’t. HoliCHIC was never built around chasing a trend. It was built around a clear point of view on style, fit and how South Asian-inspired design could work in everyday life without feeling costume-like.

The Nordstrom moment came after months of cold outreach, which is a polite way of saying she kept sending emails, following up, and refusing to disappear. That persistence paid off in 2023, when holiCHIC got a Nordstrom pop-up at the retailer’s New York flagship, right before Diwali. Timing mattered here. The holiday season gave the collection a natural place in the store, but the brand still had to do the work on the floor. It had to sell.

It did more than that. The pop-up beat expectations, which opened the door to a buyer meeting. And that shift changed the scale of the conversation around the business, after that came an online partnership with Nordstrom. A bootstrapped label that had grown slowly for years suddenly had a much larger retailer paying attention to sell-through, product mix and what customers were reaching for.

That is the part that matters. A founder can believe in her own brand for a long time without outside proof. The Nordstrom win gave holiCHIC a cleaner answer to the question investors eventually ask: is this just a nice story, or is there real demand here? For Rao, the answer arrived at a busy Manhattan flagship, a few racks at a time, right before Diwali.

How to tell when momentum is real enough to fundraise

How to tell when momentum is real enough to fundraise

For Megha Rao, the nervous part didn’t begin with the Nordstrom pop-up itself. It started after the applause died down.

That’s the moment when a founder has to ask the less glamorous question: was this a one-time spike, or did holiCHIC just prove it can keep pulling customers in on its own? A weekend win can flatter you. The spreadsheet’s less sentimental. Rao was looking for something sturdier than a nice story, and she knew that a bootstrapped business can confuse attention with traction if you aren’t careful.

Nordstrom helped, partly because it pushed holiCHIC into a new setting and partly because Nordstrom is not a casual test market. The retailer publishes its policies and commitments, which gives you a sense of how structured these relationships are once a brand gets through the door. For Rao, the bigger point was simpler: the pop-up did more than sell a few clothes. It sent a signal that the brand could operate outside its original circle and still move product.

The internal numbers helped confirm that feeling. HoliCHIC was no longer selling mainly to South Asian customers who already understood the sari-inspired references in the clothes. A growing share of buyers came from outside that group. They were responding to the style, the fabrics, the fit, and the fact that the pieces worked as real wardrobe items instead of costume-y occasion wear. That matters because niche love can be loyal but limited. Broader demand is a different animal. If people are buying the clothes without needing the cultural backstory first, the addressable market’s wider than the founder may have assumed at the start.

Momentum is real when strangers buy the product for the product, not just for the story behind it.

That distinction changed the fundraising conversation. HoliCHIC had already crossed the seven-figure mark before Rao raised outside money, so this wasn’t a rescue mission. It was a scale decision. The business had enough sales history to show that demand existed, and enough operating proof to show that more capital might help it grow faster without forcing a reset. That’s a different posture from raising because payroll’s breathing down your neck. It gives a founder room to think about inventory, marketing, and distribution in a more measured way, instead of treating funding like a life raft.

For founders trying to judge their own timing, that line can be useful. If revenue rises after a big retail win and stays up, if the customer mix starts widening, and if the business keeps getting attention without pushing hard for it, the raise may be about expansion rather than survival. The same logic shows up in public funding advice too. The SBA guide to funding your business lays out the basic routes founders usually weigh, from self-funding to outside capital, which is handy when you’re trying to decide whether your company needs fuel or just patience.

Amazon Fashion added another layer of proof. It suggests the interest isn’t confined to one physical store or one holiday moment, when a platform like that starts paying attention. Retailers and marketplaces don’t move for sentiment. They move when they see customers doing the work for them. In holiCHIC’s case, the Nordstrom win opened a door, but the broader response helped show that the door didn’t lead into a tiny room. It led to a much larger floor.

That’s really the test Rao seemed to apply. She wasn’t asking whether the brand had a good month. And she was asking whether the brand had reached the point where outside capital could amplify what was already happening. A raise would’ve added pressure without much upside, if the answer had been no. Because the answer looked closer to yes, the money became a tool for scale, not a vote of confidence from wishful thinking.

And that’s a cleaner way to think about fundraising, especially for founders who have spent years doing everything themselves. The right moment isn’t when you’re hoping momentum will arrive. It’s when the numbers, the customers and the inbound interest already say it has.

Choosing investors who fit the way you work

Once the momentum was visible, the next question got less glamorous very quickly: who should actually fund the next stage, and what kind of relationship would come with that money?

For Megha Rao, bootstrapping had already taught her that revenue can be a stubborn thing. Some months look terrific. Orders come in, margins hold up and you feel briefly smug, which is always a dangerous emotion in business. Then sales slow, inventory sits longer than you’d like, and the profits from a good stretch can thin out before you’ve had time to admire them. That kind of uneven cash flow can make a founder cautious in a very practical way. It also makes outside capital look less like a trophy and more like breathing room.

Rao was open to that. She didn’t want to hand over the steering wheel, but she did want more room to grow holiCHIC without having to squeeze every decision through the limits of self-funding. That distinction matters. Plenty of founders talk about raising money as if the point is to chase speed at any cost. In reality, the better question’s whether the money lets you keep building the business you already know how to run.

The best investor fit is usually the one that makes the founder’s job simpler, not louder.

Choosing investors who fit the way you work

She was willing to speak with more than one investor, which makes sense. Most founders should compare options instead of jumping at the first interested party like they’re buying the last seat on a train. But the eventual lead angel investor turned out to be the cleanest fit for what holiCHIC needed. After just a couple of conversations, that investor committed the full seed amount. No months of waiting around, no dramatic back-and-forth, no theatrical “let’s circle back next quarter” routine that leaves founders refreshing their inboxes like it owes them money.

That speed told Rao something useful. It suggested the investor understood the brand quickly, understood the retail opportunity, and understood the kind of operator she was. When that happens early, the rest of the process gets easier. You spend less time translating your business model and more time discussing how the capital will actually be used.

A single supportive backer can be a cleaner setup than a roomful of interested voices. With one angel investor, the founder usually’s one set of expectations to manage, one point of contact and one network that can be tapped without turning every decision into a group project. That doesn’t mean one investor is always better. Some companies need a broader cap table, and some raise from multiple angels for good reasons. Still, the more people involved, the more moving parts show up. One person wants a faster return. Another wants a different growth channel. A third has opinions about staffing, pricing, or where the brand should pop up next. The cap table starts to feel like a small committee with opinions on your calendar, before long.

Rao seemed to prefer the simpler version. One check can bring focus. And one investor can keep the process moving without forcing the founder to mediate between competing priorities. For a brand like holiCHIC, which had already done the hard work of proving demand, that kind of support made more sense than building a crowd of partial backers and spending half the month explaining the same decisions to three different people.

If you’re at the stage where growth is real but still uneven, a practical resource like Microsoft’s guide on how to get funding for your startup can help you think through the basic routes before you start taking meetings. The goal is not just to find money. It’s to find the kind of money you can live with once the paperwork is signed.

In Rao’s case, the investor choice came down to fit as much as funding. That’s not a romantic idea, and it’s just good business.

Where the money goes: scaling without losing discipline

Rao didn’t raise money so she could start throwing ideas at a wall and see what stuck. That approach might make for a lively founder story, but it’s a terrible way to run a business with real customers, real inventory and real shipping deadlines. By the time holiCHIC went out to raise, the brand had already worked through the awkward early lessons, including product fit, fulfillment snags, and the usual mistakes that show up when a company is still figuring out how it wants to operate. The seed round was meant for expansion, not for proving the concept all over again.

A sensible raise funds what already works. It does not buy permission to get reckless.

That distinction matters because the brand had reached the stage where money could speed up decisions instead of rescuing them. The business had already found product-market fit in enough places to justify more push. It had also learned where the weak spots were. When a founder has seen what happens when a product fits poorly, when shipping slips, or when inventory gets tied up in the wrong sizes, she tends to get less romantic about capital. There’s no glamour in paying to repeat the same mistake.

So where does the money go? First, into marketing that can actually move the needle. Rao planned to put more behind channels that had already shown promise, rather than spray cash across every platform with a pulse. That means more attention to influencer-led growth, but not the lazy version where a brand pays for a few posts and hopes for magic. The smarter version’s more selective. Find the creators whose audiences already care about occasion wear, fusion style, or culturally specific fashion, then keep testing which formats drive traffic and sales. Short videos, try-on clips, styling posts and creator-led product demos can all do the job, but only if the product itself’s ready to convert interest into orders.

The next distribution push also includes Amazon Fashion and TikTok Shop, which makes sense for a brand like holiCHIC. Amazon gives the company another way to meet customers where they already shop. TikTok Shop, on the other hand, can move products quickly when the fit, price point and visual appeal all land at once. Neither channel is a shortcut. Both require disciplined inventory planning, tight product pages, and a willingness to watch what sells instead of guessing.

That same practical mindset applies to the product line itself. HoliCHIC Men is part of the plan, and it gives the company room to widen its base without abandoning the design language that got it here. Alongside that, Rao wants to sharpen fit and style, which sounds simple until you’ve run apparel for more than five minutes. Better fit means fewer returns, less confusion at checkout and fewer customers wondering whether they need to size up, size down, or consult a group chat before ordering. Style tweaks matter too. A small adjustment to shape, drape, or fabric can change whether a piece feels special or merely decent.

The geographic plan is measured in the same way. For now, the company is focused on the U.S. and Canada, where it can keep refining distribution, learn from actual demand, and build repeat buyers. Larger global markets can wait until the brand has the operational muscle to handle them. That’s the part of a fundraising strategy people skip when they get excited about growth. Money can open doors, sure, but it also exposes sloppy systems faster than customers do.

As holiCHIC scales, retail expansion will bring more rules, not fewer. Larger platforms and department stores expect cleaner operations, better product data, and a more disciplined supply chain. Nordstrom’s responsible sourcing standards are a public example of the kind of expectations bigger retail partners put on brands, and a founder has to be ready for that sort of scrutiny before the orders arrive. The same goes for planning capital. JPMorgan Commercial Banking has a useful overview of how startups think about fundraising, and the basic idea fits here: raise for the next stage, then spend with a steady hand.

The takeaway: raise to amplify traction, not manufacture it

For Megha Rao, the lesson from holiCHIC’s Nordstrom moment is fairly plain: don’t go fundraising to invent momentum. Wait until the business is already moving on its own, then use capital to keep the wheels from wobbling off when demand gets louder.

That sounds tidy on paper, of course. In real life, it usually means living with a fair bit of uncertainty for a while. A founder can have a strong month, then a soft one, then a week where everyone asks for a different size and a different hem length and somehow all of them need it by Friday. Rao has lived that version of the job. She’s also clear about the point when outside money makes sense. It’s not when you’re hoping customers will show up. It’s when customers already have, and the question becomes how far the business can go without straining itself.

Raise after the market has started doing the talking for you.

That framing explains why her next stretch is still rooted in the business she already has. She’s thinking about stronger sales, a deeper retail presence, a team that can handle more volume, and a wider set of products without losing the brand’s point of view. The plan isn’t to sprint into every market at once just because a spreadsheet says growth looks nice in a slide deck. The U.K., India, and the Middle East are still on the horizon, but only after the core markets are sturdier.

That restraint matters. A brand can look lively while the back end starts groaning. Inventory gets stretched. Fulfillment gets messy. Customer service gets busy in the least charming way possible. So Rao’s approach is to keep the engine healthy first, then widen the road. Channels like Amazon Fashion and TikTok Shop can keep doing what they do best, but they’re part of a larger system, not a reason to start chasing shiny objects.

She’s also said she’d want revenue to climb several times beyond where it sits now before considering another raise. That’s a disciplined way to think about it. It leaves room for more use later, once the numbers are doing more of the convincing and less of the wishing.

And that’s really where the Nordstrom win comes in. It was a sales win, sure, but it also answered a harder question: had holiCHIC grown into a business that could catch a bigger wave and keep its footing? The answer appears to have been yes. Not because one pop-up solved everything, but because it showed the brand had reached a point where outside capital could support a chapter that was already underway.

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