Fast Fashion Retailer NEWME Raises $18 Million in Series A Round Led by Accel and Existing Investors
Mumbai, India — NEWME, a fast-growing digital-native fashion retailer, announced on Thursday that it has raised $18 million in a Series A funding round. The investment was led by Accel, with participation from existing investors Fireside Ventures and AUM Ventures. Accel contributed $12.5 million to the round and will appoint a representative to NEWME’s board, according to Sumit Jasoria, CEO and Co-founder of NEWME.
The funding will be primarily used to expand NEWME’s offline presence and optimize its supply chain operations. Over the next 12 to 18 months, the company plans to open 40 to 50 stores across 20 key cities, focusing on significant markets in Northeast India. Specifically, NEWME aims to launch 15 to 20 offline stores in the fiscal year 2025 and anticipates a fourfold growth in revenue compared to the previous year by the end of the current financial year.
In its strategic plan, NEWME outlined its commitment to building an omnichannel presence by establishing a robust network of offline stores to complement its thriving online platform. The company plans to leverage cutting-edge technology to streamline its supply chain, aiming to address evolving shopping preferences and maintain design relevance. “Our proprietary technology stack allows us to manage the supply chain efficiently while minimizing waste and delivering the latest fashion trends swiftly and sustainably,” said Jasoria.
Founded in 2022 by Vinod Naik, Shivam Tripathi, Himanshu Chaudhary, and Sumit Jasoria, NEWME is among the first digital-native fast fashion brands to venture into offline expansion with a strong focus on omnichannel presence. The company opened its first retail store in Bengaluru in July 2023 and has since expanded to five new cities with six retail outlets. As it seeks to capture the Gen Z market in India, NEWME faces competition from London-based Urbanic, global giant Shein, and domestic players like Tata-backed Zudio.
Anand Daniel, Partner at Accel, highlighted the potential for direct-to-consumer (D2C) brands in India’s rapidly growing retail sector: “D2C brands are uniquely positioned to capitalize on India’s retail sector, which is set to cross $2.2 trillion by 2030, leveraging omnichannel strategies.”
This announcement follows NEWME’s earlier success in raising $5 million in a seed round led by Fireside Ventures in January, with the funds earmarked for enhancing its supply chain and expanding its manufacturing and offline presence. The latest funding will further bolster NEWME’s efforts to become a leading player in the Indian fast fashion market, offering trendy and sustainable fashion options to the burgeoning Gen Z demographic.