GenZ-focused fashion startup Newme has raised $18 million in its Series A funding round led by venture capital firm Accel. Existing investors, including Fireside Ventures and AUM Ventures, also participated in the round.

The Bengaluru-based startup plans to use the funds primarily in three areas: strengthening its supply chain, investing in data science and technology, and expanding its offline presence, according to Newme co-founder and CEO Sumit Jasoria.

“Innovation in the supply chain is critical for our business… Another crucial area is technology and data science, where we aim to deepen our expertise and attract more talent,” Jasoria told Inc42. Additionally, part of the new capital will be used for talent acquisition, he added.

Founded in 2022 by Jasoria, along with Vinod Naik, Shivam Tripathi, and Himanshu Chaudhary, Newme specializes in women’s apparel. The startup claims to launch 500 new designs every week and offer over 9,000 styles on its website, targeting Gen-Z female shoppers.

Currently, Newme operates six retail stores across five cities: Bengaluru, Hyderabad, Indore, Mumbai, and Chandigarh. It plans to open its seventh store soon in Dehradun and aims to have 15 stores across Mumbai, Pune, Delhi NCR, and Bengaluru by March 2025.

“We are seeing tremendous growth and customer enthusiasm for our offline business. Our stores are performing exceptionally well, and we are one of the few brands in India securing ground store locations in malls. This demonstrates the traction we’re gaining with our customers. Looking at the long-term business prospects, we’re very excited about our journey in offline expansion, and we believe it will only get stronger from here,” Jasoria said.

Meanwhile, the Newme app and website together boast 3.5-4 million registered users. Currently, the startup receives nearly 40-50% of its orders from metros and Tier-I cities, with Bengaluru and Hyderabad contributing a significant share. Tier-I and Tier-II cities together account for about 75% of its demand, while the remaining 25% comes from other cities.

Jasoria mentioned that the startup grew almost 7X in 2023 and is on track for 4X-5X growth in the ongoing year. He added that the focus continues to be on increasing its market share.

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