GenZ fashion startup Newme has bagged $18 million in its Series A round led by venture capital firm Accel with the participation of existing investors- Fireside Ventures and AUM Ventures.
The GenZ fashion startup is set to utilize these funds to strengthen its supply chain, invest in data science and technology, talent acquisition, and offline outlet expansion with a focus on increasing its market share.
Founded by Sumit Jasoria, Shivam Tripathi, and Himanshu Chaudhary in 2022, the fashion startup offers women’s apparel, with claims to release 500 brand-new designs every week and over 9000 styles available on its website. Its six retail stores are spread across Mumbai, Bengaluru, Hyderabad, Chandigarh, and Indore with the seventh set to be launched in Dehradun as part of the startup’s goal to have 15 stores across Delhi NCR, Mumbai, Pune, and Bengaluru by 2025. The startup’s 40-50% orders are based in metro cities with Bengaluru and Hyderabad as the leading tier 1 cities. 75% orders come from tier 1 & 2 cities while the other cities account for the rest 25%.
Commenting upon the positive response the apparel line has received, Jasoria said, “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.”
Collectively, Newme app and website total almost 40 lakh users. In 2023, the startup assumed a seven-fold growth rate while currently, it is around 5X. Earlier in 2024, the brand had bagged $5.4 million in seed funding round from Fireside Ventures, AUM Ventures, 2AM Ventures and All In Capital.
In India’s highly competitive fashion market it competes with the likes of fashion majors such as Ajio and Myntra. The fashion ecommerce industry’s market share is estimated to be dominated by women’s fashion accounting for 50% by 2030 as the overall market value is set to reach a size of $112 billion by 2025 with a CAGR of 25%.
