SUMMARY
The startup plans to use the funds raised to expand phygital distribution model and opening additional experience stores across India
Founded in 2020, Showcase B2B partners with garment manufacturers to offer wholesalers and retailers a wider variety of products to choose from
According to the startup, India’s unbranded garment wholesale market is set to surge from $50 Bn to $80 Bn in the next five years
B2B platform for unbranded garments, Showroom B2B, has secured $6.5 Mn in a Pre-Series A funding round led by Jungle Ventures and with participation from Accion Venture Lab, Saison Capital and ICMG Partners.
Existing backers Strive, Gemba Capital, and Titan Capital, and debt partners Alteria Capital and Stride Ventures also participated in the funding round.
The startup plans to use the funds raised to expand phygital distribution model and open additional experience stores across India. Showroom B2B will also enhance its private labeling capabilities and bring premium and affordable fashion to retailers in Tier II cities and beyond.
Founded in 2020 by IIM Lucknow graduates Abhishek Dua and Shubham Gupta, Showroom B2B operates three experience stores, allowing fashion retailers to interact with manufacturing samples before placing bulk orders. By partnering with over 500 garment manufacturers and 3,000 retailers, the startup simplifies transactions and doorstep deliveries via its app-based ordering system.
Speaking on the fundraise, Dua, said, “Our unwavering commitment to removing middlemen and empowering small retailers and wholesalers, who were previously excluded, has yielded impressive results.”
“Notably, our order sizes are consistently 5-10 times larger than competitors, and our industry-low return rate is in single digits, a stark contrast to the industry norm of 25-30%. But we recognise that there is still much work to be done, and that’s where our new investment comes into play. This infusion of capital will give us a significant boost in scaling our operations to make an even greater impact in the untapped sections of the unorganised apparel market,” he further added.
While wholesalers struggle to offer a wider portfolio of designs as existing inventories multiply, retailers have to make frequent trips to sourcing clusters to fill in their store inventory. The startup claims its asset-light business model offers retailers access to a broader inventory of competitively priced unbranded garments within their local communities.
Vishesh Sharma, VP of India investments at Jungle Ventures, added, “With major global apparel manufacturing clusters located in Indian cities, domestically manufactured apparel is going to continue gathering steam. Showroom B2B enables these manufacturers to reach the market more efficiently while enabling customers to access a wider assortment of designs at competitive prices.”
According to the startup, India’s unbranded garment wholesale market is set to surge from $50 Bn to $80 Bn in the next five years.
