Newme – Women-Focussed Fast Fashion Brand Secures Funding

Newme, a prominent women-focussed fast fashion brand, has kicked off a Series B funding round, raising Rs 108.66 crore (around $12 million). This round is co-led by existing investors Accel India, Fireside Ventures, along with new investor Point72 Ventures joining in.

Funding Details

In a past funding effort, Newme secured $18 million during its Series A round, which was led by Accel in July of the previous year. The board of Newme approved a special resolution to issue 3,447 Series B CCPS at an issuance price of Rs 3,15,231 per share to reach the aforementioned amount, as stated in its regulatory filing with the Registrar of Companies (RoC).

Accel India and Fireside Ventures are each set to invest Rs 36.94 crore ($4 million), while Point72 Ventures will contribute Rs 26.38 crore ($3 million). Other investors, including AUM Ventures, 2am Ventures, and A. Paul SRC SPV V, LLC will provide the remainder of the funds. This development was initially reported by Inc42.

Company Valuation

Based on analysis from Startup Superb, the D2C firm’s valuation is anticipated to increase by approximately 41% to Rs 988 crore ($112 million), in contrast to its previous valuation of Rs 700 crore during the Series A round.

About Newme

Founded by Shivam Tripathi, Sumit Jasoria, Himanshu Chaudhary, and Vinod Naik, this Bengaluru-based startup focuses on women-centric products that cater to Gen Z consumers. They market their offerings through both online platforms and offline retail locations. The company’s app boasts over 7 million downloads, and it operates 16 offline stores in major cities, including Bengaluru, Mumbai, New Delhi, Chandigarh, Pune, and Hyderabad, among others.

Funding Performance

As per sources from a startup data intelligence platform, Newme has successfully raised over $23 million across two funding rounds, including its seed round in January 2024. Following the latest investment, Fireside Ventures will emerge as the largest external shareholder, owning 19.27% of the company, while Accel India will hold 17.06%. New investor Point72 Ventures will possess a 2.67% stake. The co-founders collectively will maintain a 31.45% ownership stake in the firm.

Current Financials

In terms of financial performance, Newme reported Rs 48.28 crore in operating revenue for the fiscal year ending March 2024, but also experienced a loss of Rs 35.75 crore. The financial results for FY25 have not yet been disclosed.

Market Trends

In recent years, fast fashion brands have drawn significant investment. For instance, quick-fashion delivery startup Slikk raised $10 million led by Nexus, while D2C menswear brand Snitch secured $40 million to bolster its entry into quick commerce. Additionally, Mumbai-based KNOT recently completed a funding round.

For further insights into trends within this sector, one should explore Startup Superb’s detailed analysis of the industry.