Fast Fashion brand Newme to raise $12 Mn at $112 Mn valuation

Women-focussed fast fashion brand Newme has kicked off Series B round with Rs 108.66 crore (approximately $12 million) co-led by existing investors Accel India, Fireside Ventures and with the participation of new investor Point72 Ventures and others.

Newme had secured $18 million in a Series A round led by Accel in July last year.

The Newme’s board passed a special resolution to issue 3,447 Series B CCPS at an issuance price of Rs 3,15,231 per share to raise the amount as mentioned earlier, according to its regulatory filing with the Registrar of Companies (RoC).

Accel India and Fireside Ventures will each invest Rs 36.94 crore ($4 million), while Point72 Ventures will join the captable with Rs 26.38 crore ($3 million). AUM Ventures, 2am Ventures, and A, Paul SRC SPV V, LLC will contribute the remaining amount.

Inc42 reported the development first.

According to Entrackr’s analysis, the D2C firm’s valuation is set to rise by about 41% to Rs 988 crore ($112 million), compared to its earlier valuation of Rs 700 crore during the Series A funding round.

Founded by Shivam Tripathi, Sumit Jasoria, Himanshu Chaudhary and Vinod Naik, the Bengaluru-based startup sells women-centric products targeting Gen Z, across both online channels and offline stores. According to its website, the company’s app has more than 7 million downloads, and it operates 16 offline outlets across cities, including Bengaluru, Mumbai, New Delhi, Chandigarh, Pune, and Hyderabad, among others.

According to startup data intelligence platform TheKredible, Newme has raised over $23 million across two funding rounds, including its seed round in January 2024. Following the latest infusion, Fireside Ventures will become the largest external shareholder with a 19.27% stake, followed by Accel India at 17.06%, while new investor Point72 Ventures will hold 2.67%. The company’s co-founders will collectively retain 31.45% ownership.

Financially, Newme reported Rs 48.28 crore in operating revenue for the fiscal year ended March 2024, with a loss of Rs 35.75 crore. The company has yet to disclose its FY25 financials.

In recent years, fast fashion brands have attracted decent funding. Quick-fashion delivery startup Slikk raised $10 million led by Nexus, D2C menswear brand Snitch secured $40 million to expand into quick commerce, and Mumbai-based KNOT also closed a funding round recently.

For a deeper look into sector trends, refer to Entrackr’s analysis on the industry.