From Queens Roots to Nordstrom: How Megha Rao Turned holiCHIC Into a Seven-Figure Brand—and the $1.5M Seed Raise That Followed

Key Takeaways

• Ensure the business has enough momentum before beginning the fundraising process.
• Choose the right partners and investors when raising capital.
• Have a clear plan for how investor funding will be used.

“Growing up in Queens, I could never quite find clothes that felt like me,” says Megha Rao, founder of holiCHIC. “So I started making them. First for myself, mixing my mother’s saris with denim and leather. Then for friends and family. Then somehow, a whole community.” Rao adds, “The dream grew into something I could have never imagined. From Queens to Nordstrom, people are wearing holiCHIC blazers, saris, dresses and more around the world.”

A former finance sales professional, Rao built a successful business largely on her own for nearly 10 years. As a Nordstrom customer, she felt certain that holiCHIC and the retailer could be a strong partnership. After months of cold calling, she secured a pop-up shop at Nordstrom’s New York flagship in 2023, just before Diwali.

“The pop-up was a massive success, and we exceeded our expectations over those three days,” Rao says. “The opportunity led to a meeting with the buyer, and then we moved into an online partnership with Nordstrom.”

After bootstrapping holiCHIC for years and building it into a seven-figure business, the brand raised its first $1.5 million seed round in May 2026. Since then, sales have increased 47%. Rao encourages other founders to consider three questions as they weigh raising a seed round:

Does the business have momentum?

“My biggest fear was that we wouldn’t be able to keep up with the momentum after the success we saw with Nordstrom,” Rao says. “After my team and I looked at the data, we saw a growing segment of customers who identified as non-South Asian. They were wearing holiCHIC because they appreciated the style and quality.”

Rao wanted financial resources available when more opportunities arose. She was right about the momentum; Amazon Fashion soon reached out. Rao was open to working with them because she had decided to raise money.

Who do you want to partner with?

“Being bootstrapped is a rollercoaster,” Rao says. “You have one great month, and the next month there’s a lull, and your profit is eaten up. At the same time, it’s your business. You take inputs from others but you make the final call.”

Rao was open to bringing on more than one investor. She was introduced to an angel investor who, after two meetings with Rao, wrote a check for the entire $1.5 million seed round. Rao says that for her, partnering with one investor was the best decision. If she had multiple investors, she would have gained access to more networks but would have had to manage many different opinions.

“Our angel investor understands our vision. They respect and appreciate how we have grown the business steadily. It was really the right fit,” Rao says.

How will you use the money?

Rao wanted to raise a seed round to scale holiCHIC. “I didn’t want to take outside funding to test and burn through investors’ cash,” Rao says. “I made plenty of mistakes early on when it came to product fit, shipping and more. We were ready to take on investors to grow different parts of the business.”

Rao had a clear vision for how holiCHIC would use the money. She planned to invest in marketing and an influencer strategy. She is focused on Amazon Fashion and TikTok Shop. “We know we have a huge audience with women, and they usually have a plus one for events they are attending,” Rao shares. “We are doubling down on holiCHIC Men and concentrating on fit and style.”

Rao also has her sights set on becoming a globally recognized brand, with the U.K., India and the Middle East on her list. But first comes work in the U.S. and Canada. She will consider raising again once revenue hits over five times, and until then, her focus is on consistent results and growing holiCHIC’s retail presence, team and product lines.

Rao’s advice to founders is simple: “Don’t raise money to find momentum. Raise money to fuel it.”

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