Accel, an early investor in Indian e-commerce giants Flipkart and Myntra, is making ready a brand new trend e-commerce guess in India whilst competitors intensifies with the current enlargement of Mukesh Ambani’s Ajio platform.
Accel is in superior talks to steer a $15-20 million funding spherical into Newme, an Indian fast-fashion e-commerce startup, in keeping with 4 folks conversant in the matter. The proposed funding would worth Newme, dubbed “Shein for India” by some backers, at round $83-85 million post-money, one of many sources mentioned.
The potential new backing comes only a week after Newme introduced it had raised $5.4 million in seed funding led by Hearth Ventures.
Newme sells its personal rapidly-changing clothes strains on-line and thru offline channels, concentrating on India’s Gen Z shoppers with common order values between $18-30. The startup, based in 2022, claims to have served 350,000 prospects and provide 500 new designs weekly at a mean value level of $10.
Accel’s curiosity comes after it previously backed Virgio, one other Indian on-line trend retailer later pivoted.
The fast-fashion e-commerce area has gained floor in India lately as native startups take inspiration from world fast-fashion pioneers Zara, H&M and Uniqlo. High participant Flipkart leads the class however faces mounting competition from Ambani’s Ajio, which has amassed about 30% market share, in keeping with analysis agency Bernstein. E-commerce rival Amazon can be seeking to construct up its fast-fashion operation, in keeping with job postings.
Shein, which was earlier banned by India, is ready for a comeback with a three way partnership with Reliance, the 2 companies mentioned final 12 months.
Accel and Newme didn’t reply to a request for remark.
