The women-focused fast fashion brand Newme has been able to complete its Series B round, raising a significant amount of ₹108.66 crore (approximately $12 million). This round was co-led by the existing investors of the company, Accel India and Fireside Ventures, showing their further trust in the direction of the brand. Other investors that participated in the funding round included a new entry into the cap table, Point72 Ventures. This is a capital injection that comes after a prior round of Series A in July last year, where the company had already raised an amount of $18 million, which was led by Accel India. In order to formally raise the most recent capital, the board of directors of Newme approved a special resolution to issue 3,447 Series B Compulsorily Convertible Preference Shares (CCPS). These shares have been issued at ₹3,15,231 per share.

Capital allocation and growth metrics

The breakdown of investments indicates the major roles of the top firms. Accel India and Fireside Ventures both invested ₹36.94 crore (approximately $4 million) per investor. Point72 Ventures, a new investor, contributed ₹26.38 crore (approximately $3 million). The rest of the capital was contributed by the participants, among them, AUM Ventures, 2am Ventures and A, Paul SRC SPV V, LLC.

This round of funding in Series B has provided a significant jump to the financial position of Newme and its market presence. The infusion of capital will boost the value of the brand by about 41%. This increases the valuation of the company to ₹988 crore (approximately $112 million) as compared to the ₹700-crore valuation of the company during Series A.

Newme is based in Bengaluru and was founded by four co-founders, Shivam Tripathi, Sumit Jasoria, Himanshu Chaudhary, and Vinod Naik. The business model of the brand focuses on providing women-centric fast fashion, and the target consumer group is in the Gen Z segment. The brand reaches the customers both online and in an increasing number of offline retail stores. Growth measures of the company indicate good penetration in the market. 

Financial performance

The shareholding structure of the company has now been properly established following the completion of this latest Series B round. Fireside Ventures will become the largest external shareholder with a 19.27% stake in Newme. The second-largest external investor is Accel India, the ownership of which is 17.06%.

The latest large investor, Point72 Ventures, gained a 2.67% stake in the business. Notably, the co-founders, which include Shivam Tripathi, Sumit Jasoria, Himanshu Chaudhary, and Vinod Naik, have a sizeable ownership position as 31.45% of the firm is held by this group.

Regarding financial performance, Newme has posted its figures for the previous fiscal year. In FY24, the company recorded an operating revenue amounting to ₹48.28 crore. During the same time, the company incurred a loss of ₹35.75 crore. The company has not published the financial statements of the current fiscal year, FY25. The new capital will play a critical role in accelerating the growth efforts regarding the expansion of market reach and operational efficiency.

Conclusion

The successful Series B round of funding, which raised ₹108.66 crore, is an indicator of a high level of trust in Newme among investors and confidence in the close relationship with the Gen Z demographic and the women-focused fast fashion brand. The addition of Point72 Ventures alongside the already existing leaders in the investment sector, Accel India and Fireside Ventures, will provide the capital and strategic support required to accelerate Newme’s multi-channel growth. Having a well-defined objective to grow its physical and online presence, the capital will play a significant role in raising the brand value of Rs 988 crore and establishing its role in the fast-changing Indian retail environment despite recording a loss in its revenue expansion in the previous fiscal year.