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Friday, June 21, 2024

Fashinza gets $100M to build strong supply chain for global fashion sector

Fashinza has secured $100 million in a new round of funding. The B2B supply chain marketplace will use the money to build a strong and sustainable supply chain for the worldwide fashion sector and to develop its global footprint.

Fashinza, a B2B marketplace for fashion brands and retailers’ supply chains, has secured $100 million in a Series B fundraising round headed by Prosus Ventures and WestBridge Capital, with previous investors Accel, Elevation, and DisruptAD participating.

Angel investors Naval Ravikant, Jeff Fagnan, Jake Zeller, Nivi, and Nitesh Banta also participated in the round. According to the Gurugram-based business, the capital round includes a mix of stock and loan finance.

The cash will be used by Fashinza to build a sustainable supply chain for the global fashion industry and to develop its worldwide footprint. This includes monetizing financial products, expanding into raw material procurement, assisting Indian SME clothing manufacturers with supply chain finance, establishing a sustainable supply chain by 2030, and implementing Industry 4.0 solutions for SMB manufacturers, according to the statement.

The startup claimed, “In the last 12 months, Fashinza grown the business 10 times, reaching $150 million in annualised GMV run rate.”

It also claimed to have lowered minimum order units to as low as 50 and cut design to delivery time by half in a single year.

Fashinza, founded by Pawan Gupta, Abhishek Sharma, and Jamil Ahmad, serves more than 200 companies in six countries: the United States, Canada, the United Arab Emirates, and India. It has around 250 manufacturing partners in India, Bangladesh, China, and Vietnam.

Fashinza secured $20 million in Series A fundraising in August of last year, driven by previous investors Accel Partners and Elevation Capital.

According to its creators, the firm has raised a total of $120 million since its establishment in 2020.

Jamil Ahmad, Fashinza’s chief business officer and cofounder said, “The latest cash injection will enable us to execute new strategies and deploy solutions, resulting in overall expansion across regions.”

Pawan Gupta, CEO and cofounder of Fashinza, said the company is pleased to grow its worldwide footprint and provide its customers in North America with rapid and sustainable tech-based supply chain solutions.

He added, “Our objective to assist our partner brands and manufacturers operate and prosper with an agile supply chain that benefits everyone is now a reality.”

Fashinza’s marketplace approach, according to the business, incorporates logistics, financial, and payment support in addition to supply chain challenges.

It competes with startups such as Mumbai-based Flyrobe, which was acquired by fashion rental service Rent It Bae in a part-cash, part-stock deal in 2019; Delhi-based FableStreet, which raised $2.95 million in 2019; and Singapore-based Zilingo, whose CEO Ankiti Bose has been suspended amid an internal investigation into the startup’s accounting practices and financials. According to Grand View Research, the worldwide B2B ecommerce industry was valued at $6.64 trillion in 2020 and is predicted to increase at a compound annual growth rate of 18.7% from 2021 to 2028.


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