Indian e-commerce giants Flipkart and Myntra have a new potential competitor on the horizon. Accel, an early investor in both companies, is preparing to lead a $15 million to $20 million funding round into Newme, a fast-fashion e-commerce startup in India. This move comes amidst intense competition in the market, with Mukesh Ambani’s Ajio platform expanding its reach.
Accel’s Interest in Newme
According to four sources familiar with the matter, Accel is in advanced talks to lead the funding round into Newme. The proposed investment would value Newme at around $83 million to $85 million post-money. This valuation puts Newme on par with other fast-fashion e-commerce startups in India.
Newme has already made a name for itself as a "Shein for India" by some backers, thanks to its own rapidly changing clothing lines and competitive pricing. The startup targets India’s Gen Z consumers, offering 500 new designs weekly at an average price point of $10. With average order values between $18 and $30, Newme has already served 350,000 customers since its founding in 2022.
Accel’s History with Fashion Retailers
Accel’s interest in Newme comes after the investor previously backed Virgio, another Indian online fashion retailer that later pivoted. This suggests that Accel sees potential in India’s fast-fashion e-commerce space and is willing to take calculated risks on new startups.
The fast-fashion e-commerce market has gained significant traction in India recently, with local startups taking inspiration from global players like Zara, H&M, and Uniqlo. Flipkart leads the category but faces mounting competition from Ambani’s Ajio, which has amassed about 30% market share according to research firm Bernstein.
Competing Forces
E-commerce rival Amazon is also looking to build up its fast-fashion operation in India, with job postings suggesting a significant push into the market. Additionally, Shein, which was previously banned by India, is set for a comeback through a joint venture with Reliance.
The competition in the Indian e-commerce market has intensified significantly in recent years, forcing startups to innovate and differentiate themselves from established players. Accel’s potential investment in Newme highlights the importance of partnerships and strategic investments in navigating this complex landscape.
Conclusion
Accel’s interest in Newme is a significant development in India’s fast-fashion e-commerce space. The proposed funding round would value the startup at around $83 million to $85 million post-money, making it one of the most valuable fashion e-commerce startups in India. As the market continues to evolve, Accel’s investment in Newme may signal a new wave of growth and innovation in the sector.
Related Articles
- Accel, India Commerce, E-commerce, Exclusive, Fast Fashion
- Mukesh Ambani, Newme, Startups
- Manish Singh, Reporter, India
- TechCrunch Daily News
- TechCrunch AI
- Startups Weekly
