Tuesday, June 25, 2024
HomeStart UpFast fashion brand Newme raises $5 million in funding 

Fast fashion brand Newme raises $5 million in funding 

Newme, a fast fashion brand focused on Gen Z, announced on Wednesday that it secured $5.4 million (Rs 45 crore) in seed funding led by Fireside Ventures. 

The Bengaluru-based startup, established in 2022, sells its clothing brand through various channels, both online and offline. It had previously received funding from investors like Aum Ventures, 2am VC, and All In Capital, who have also participated in the recent funding round.

“With this new round of capital, we are going to enhance our supply chain and scale-up the manufacturing in the country, go from two to 20 cities in our offline play with 1.5 lakh square feet of space, and build a stronger technology team over the course of the coming 12 months,” founder and CEO Sumit Jasoria said.

Presently, approximately 35% of Newme’s apparel is produced in Mumbai, with the remaining 65% in China. The brand aims to increase local production to 50% in the short term, signaling a commitment to bolster local manufacturing.

Newme, with a focus on catering to Gen Z (individuals born between the mid-to-late 1990s and the early 2010s), has successfully served over 3.5 lakh customers through its website and stores. Leveraging technology guided by four designers, the brand introduces 500 new designs per week, consistently refreshing its curated collection to meet the dynamic preferences of its target audience.

In July 2023, Newme inaugurated its initial two stores in Bengaluru, located at Forum South Mall and Orion Mall Rajajinagar. Expanding its physical presence, the third store was launched in December 2023 at Infiniti Mall Malad in Mumbai. The brand has ambitious plans to extend its footprint to additional cities, with Chandigarh and Jaipur being part of the upcoming expansion strategy, Jasoria added.

Before joining Newme, Jasoria held various roles, including overseeing the expansion of the e-commerce platform Daraz in Myanmar, Sri Lanka, and Nepal. Additionally, he served as the head of Meero, a company specializing in professional fashion photography, artificial intelligence-driven image management, and quality enhancement services in India, among other responsibilities.

“Today, the fast fashion space has become less a fashion game and more a technology game,” he added. Newme currently retails its apparel at an average price point of Rs 900. Its average billing value comes to about Rs 1,500 online and Rs 2,500 offline, Jasoria said.

Newme has primarily expanded its consumer base by targeting students in approximately 300 colleges across 150 cities, employing campus ambassador programs as a key strategy, Jasoria added.

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