Exclusive: Prosus leads new round in Amar Nagaram’s startup Virgio

Fashion platform Virgio has raised $10 million or Rs 81.5 crore in an extension of its Series A round from Prosus Ventures (formerly Naspers Ventures). This is the third tranche of its Series A round for the Bengaluru-based company in 2022.

The board at Virgio has passed a special resolution to issue 1,16,366 Series A3 compulsory convertible preference shares (CCPS) at an issue price of Rs 7,005.3 per share to raise Rs 81.52 crore or $10 million, as per the regulatory filing with the Registrar of Companies (RoC).

Following the proceeds, Accel remains the largest stakeholder in the company with 16.29% stake while the new investor Prosus will command 6.25% of the capital in the company.

As per Fintrackr’s estimates, the company has been valued at around Rs 1,304 crore or $161 million (including ESOPs). Virgo had raised $7.4 million as a part of its Series A round in November and an undisclosed amount of funding from Accel India early this year.

In September, an ET report suggested that Prosus will join Virgio’s new round at a valuation of $150-160 million.

Founded by former Myntra chief executive Amar Nagaram in February 2022, Virgio will connect designers and manufacturers to create a fashion ecosystem. The business is designed to provide fast-paced fashion trends for Gen Z and new-age shoppers.

As per the company's website, it looks similar to Chinese fashion retailer Shein, which was banned in India in 2020. Virgo offers casual, partywear, loungewear, sportswear, and ethnic clothing for both Men and Women. The mobile application has over 100K downloads so far.

Besides VC firms, notable individual investors including Saif Ali Khan, Bhavish Aggarwal, Sri Harsha Majety, Kunal Shah, Vidit Atrey, and Mekin Maheshwari have already invested in the company.