B2B manufacturing marketplace Fashinza has raised $20 million in a mix of equity and debt as part of Series A funding. The round was led by existing investors Accel Partners and Elevation Capital along with Abu Dhabi’s DisruptAD, Stride Ventures, Alteria Capital, and Tradecred.
The company’s second funding round also saw the participation of Anand S Ahuja, MD, Shahi Exports & Founder and actress Sonam Kapoor Ahuja.
The funds will be utilised to invest in supply-chain technology and expand the company’s presence and manufacturers’ base globally, especially in the US and Middle East, said the company in a press statement.
Previously Fashinza had picked up $2.6 million from Accel and Elevation as a part of its seed round in January 2021. Kunal Bahl, Rohit Bansal and Alok Mittal are the early backers of the Gurugram-based startup.
While the company did not disclose its valuation in this round, sources aware of the development estimate its post-money valuation at around $40-45 million.
Fashinza solves supply chain challenges, especially in the apparel and fashion segment, by connecting fashion brands to experienced manufacturers. The company connects family-run small and mid-sized audited factories to the cloud with their mobile-based production management and visibility software.
Fashinza also solves credit for fashion brands and suppliers in cross-border transactions through its Buy Now Pay Later program. Currently present in 10 countries and have partnered with brands from the US, Canada, UK, Middle East, and India. As per its website, it works with about 150 leading brands including Forever 21, Hummel, Centrix Brands, Nykaa, FirstCry, Clovia and Amaro.
According to Fashinza’s co-founder and chief executive Pawan Gupta, the company has grown over 20 times in the last 12 months. The company doesn’t have any direct competition but it competes with Udaan’s fashion vertical and Flipkart-Amazon’s wholesale business.