In its Series A funding round, led by Accel Venture Capital, Newme, a fashion business catering to Generation Z, has raised $18 million. Longtime backers Fireside Ventures and AUM Ventures also participated in the round.

The Bengaluru-based company plans to use these funds primarily to bolster its supply chain, invest in data science and technology, and grow offline business. 

As CEO and cofounder Sumit Jasoria stated, “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.”

The recently acquired funds will also be used to hire more staff members for the business.

Vinod Naik, Shivam Tripathi, Himanshu Chaudhary, and Jasoria founded the women’s apparel company Newme in 2022. The company claims to have over 9,000 styles available on its website and to release 500 new patterns every week. It targets customers who are Gen Z females.

Currently, Newme operates six retail stores across Bengaluru, Hyderabad, Indore, Mumbai, and Chandigarh, with plans to open a seventh store in Dehradun soon. By March 2025, the startup aims to expand to 15 stores across Mumbai, Pune, Delhi NCR, and Bengaluru.

Jasoria added, “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.”

Meanwhile, 35–40 lakh people have registered on the Newme website and app together. At the moment, the firm receives between 40% and 50% of its orders from Tier-I and metro areas, with Bengaluru and Hyderabad accounting for a sizable portion of them. About 75% of its demand is met by Tier-I and II cities combined, with the remaining 25% coming from other cities.

The startup expanded about seven times in 2023 and is expected to increase four to five times this year.

About six months before this investment round, the fashion company raised $5.4 million in initial money from Fireside Ventures, AUM Ventures, 2 AM Ventures, and All in Capital.

The firm caters to Generation Z in the congested and very competitive rapid fashion sector. Famous fashion brands such as Myntra and Ajio have introduced Gen Z-oriented merchandise to their platforms; concurrently, the global fast fashion giant is preparing to make a comeback to India in association 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.”

The fashion e-commerce sector in India is expected to reach a valuation of $112 billion by 2030, growing at a compound annual growth rate of 25%, according to an Inc42 report. It is anticipated that by 2030, women’s apparel and accessories will command a substantial 50% share of this market, putting them in the lead.

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