The round also saw participation from existing investors, including Fireside Ventures and AUM Ventures
Newme will utilise the funds primarily in three areas – bolstering its supply chain, investing in data science and technology, and its offline expansion
The startup launches 500 fresh designs every week, and it has overall nearly 9000+ styles live on the website targeting Gen-Z female shoppers
GenZ-focussed fashion startup Newme has raised $18 Mn in its Series A funding round led by venture capital firm Accel. The round also saw participation from existing investors including Fireside Ventures and AUM Ventures.
The Bengaluru-based startup plans to utilise the funds primarily on three areas — bolstering its supply chain, investing in data science and technology, and offline expansion, Newme cofounder and CEO Sumit Jasoria told Inc42.
“Innovation in the supply chain is critical for our business… Another crucial area is technology and data science, where we aim to deepen our expertise and attract more talent,” Jasoria said.
The startup will also use a part of the freshly raised capital for talent acquisition, he added.
Launched in 2022 by Jasoria, along with Vinod Naik, Shivam Tripathi, and Himanshu Chaudhary, Newme sells women apparel. The startup claims to launch 500 fresh designs every week and have nearly 9,000+ styles live on the website targeting Gen-Z female shoppers.
Currently, Newme has six retail stores across five cities – Bengaluru, Hyderabad, Indore, Mumbai and Chandigarh. It plans to launch its seventh store soon in Dehradun. By March 2025, the startup plans to have 15 stores across Mumbai, Pune, Delhi NCR, and Bengaluru.
“We are seeing tremendous growth and customer enthusiasm for our offline business. Our stores are performing exceptionally well, and we are one of the few brands in India securing ground store locations in malls. This demonstrates the traction we’re gaining with our customers. Looking at the long-term business prospects, we’re very excited about our journey in offline expansion, and we believe it will only get stronger from here,” Jasoria said.
Meanwhile, Newme app and website together boast 35-40 lakh registered users. Currently, the startup nearly 40-50% of its orders from metros and Tier-I cities, with Bengaluru and Hyderabad contributing a significant share. Tier-I & II cities together account for about 75% of its demand, while the remaining 25% comes from other cities.
Jasoria said that the startup grew almost 7X in 2023 and is on track for 4X-5X growth in the ongoing year. He added that the focus continues to be on increasing its market share.
The funding round comes almost six months after the fashion brand raised $5.4 Mn in seed funding from Fireside Ventures, AUM Ventures, 2AM Ventures and All In Capital.
The startup competes in the highly competitive and crowded GenZ-focussed fast fashion market. While prominent fashion brands like Myntra and Ajio have introduced GenZ-focussed offerings on their platforms, global fast fashion giant is also set to re-enter India in partnership with Reliance Retail.
Commenting on the competition, the founder said that Newme’s supply chain is its biggest strength. “We are, perhaps, the only brand today that launches 500 new designs on a weekly basis. No other brand does this, and it’s a unique advantage that is difficult to replicate due to the complexities of building such an efficient supply chain,” Jasoria said.
According to an Inc42 report, India’s fashion ecommerce sector is set to grow at a CAGR of 25% to reach a size of $112 Bn by 2030. Within this market, the women’s apparel and accessories segment is expected to lead, capturing a substantial 50% market share by 2030.
