B2B Startup Fashinza Bags $100 Mn Led By Prosus, WestBridge Capital

SUMMARY

The startup has witnessed 10x growth in the past 12 months crossing $150 Mn in annualised gross merchandise volume (GMV) run rate

The Gurugram-based startup has raised $120 Mn in total since its inception in 2020

Fashinza makes things easy for international brands from accessing designs to delivering them as fast as four weeks with low minimums, it claims

B2B marketplace for supply chain for fashion brands and retailers, Fashinza, has raised $100 Mn in Series B funding round led by Prosus Ventures and WestBridge Capital with participation from existing investors Accel, Elevation, and DisruptAD.

The round also saw participation from angel investors Naval Ravikant, Jeff Fagnan, Jake Zeller, Nivi, and Nitesh Banta. The funding round is a combination of equity and debt financing, the Gurugram-based startup said in a statement.

Fashinza will use the funds to create a sustainable supply chain for the global fashion industry and expand its presence globally. This includes monetising fintech offerings, expanding into raw material procurement, helping Indian SME apparel manufacturers with supply chain financing, creating a sustainable supply chain by 2030 and Industry 4.0 solutions for SMB manufacturers, it said.

“In the past 12 months, and in the middle of a global pandemic, Fashinza grew the business 10x crossing $150 Mn in annualised GMV run rate,” the startup said.

It further said that it has also reduced minimum order units to as low as 50 and reduced design to deliver TATs by 50% in a single year.

Founded by Pawan Gupta, Abhishek Sharma, and Jamil Ahmad, Fashinza serves more than 200 brands across six countries, including the United States, Canada, UAE, and India. It has partnered with more than 250 manufacturers in India, Bangladesh, China, and Vietnam.

Fashinza, in August last year, raised $20 Mn in Series A funding led by existing investors Accel Partners and Elevation Capital.

The startup has raised $120 Mn in total since its inception in 2020, according to its founders.

“We are excited to expand our global presence and offer fast and sustainable tech-based supply chain solutions — especially to our customers in North America. Our goal to help our partner brands and manufacturers work and thrive with an agile supply chain that benefits all is now a reality,” said Pawan Gupta, CEO and cofounder of Fashinza.

“The funds infusion would help us in executing new strategies and implement solutions, leading to all round growth across geographies,” said Jamil Ahmad, chief business officer and cofounder of Fashinza.

Apart from solving supply chain issues, Fashinza’s marketplace model also includes logistics, fintech, and payment support, the startup claimed.

It competes with startups like Mumbai-based Flyrobe, which was acquired by fashion rental service Rent It Bae, in a part-cash and part-stock deal, in 2019; Delhi-based FableStreet, which closed a $2.95 Mn funding in 2019; Singapore-headquartered Zilingo whose chief executive officer Ankiti Bose has been suspended amid an internal probe into the startup’s accounting practices and financials.

Meanwhile, the global B2B ecommerce market size was valued at $6.64 Tn in 2020 and is expected to grow at a compound annual growth rate of 18.7% from 2021 to 2028, according to a report by Grand View Research.