Fast fashion retailer NEWME announced on Thursday that it has secured $18 million in Series A funding. The equity round was led by Accel, with participation from existing investors Fireside Ventures and AUM Ventures. Accel contributed $12.5 million to the round and will nominate one person to NEWME’s board following the investment, according to NEWME CEO and Co-founder Sumit Jasoria.
The funds will be used for offline expansion and optimizing the company’s supply chain. NEWME plans to open 40-50 stores across 20 key cities, including significant markets in North-east India, over the next 12-18 months. Specifically, it aims to launch 15-20 offline stores in FY25 and projects a fourfold growth compared to the previous year by the end of the current financial year.
In a statement, NEWME outlined its strategic plans: “building an omnichannel presence, establishing a strong network of offline stores to complement the thriving online platform, leveraging cutting-edge technology to streamline the supply chain.” Jasoria emphasized the company’s commitment to addressing the evolving shopping preferences and design relevance challenges: “Our proprietary technology stack allows us to manage the supply chain efficiently while minimizing waste and delivering the latest fashion trends swiftly and sustainably.”
Founded in 2022 by Vinod Naik, Shivam Tripathi, Himanshu Chaudhary, and Sumit Jasoria, NEWME was among the first digital-native fast fashion brands to venture into offline expansion and focus on an 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. NEWME counts London-based Urbanic and global giant Shein, along with domestic players like Tata-backed Zudio, among its competitors as it seeks to capture the Gen Z market in India.
Anand Daniel, Partner at Accel, highlighted the potential for D2C brands in India’s retail sector: “D2C brands are uniquely positioned to capitalise on India’s retail sector, which is set to cross $2.2 trillion by 2030, leveraging omnichannel strategies.”
The announcement follows NEWME’s earlier success in raising $5 million in a seed round led by Fireside Ventures in January. The startup had indicated that the funds would be used to enhance its supply chain and expand its manufacturing and offline presence.
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