Sumit Jasoria, co-founder of NEWME, elaborates on the brand’s origin, its use of technology, online and offline expansion strategies, and more…
Bengaluru: Gen-Z represents the future spending power in luxury and holds the current spending power in affordable premium and fast fashion. This demographic comprises a population of 377 million in India, with a collective spending power that has surged to $860 billion this year.
This figure is projected to reach approximately $2 trillion by 2035, according to a report by Boston Consulting Group (BCG).
To capitalise on this generation’s shopping strategies, many new brands are emerging, while established companies are creating sub-brands such as Reliance Retail’s Yousta, Siyaram’s ZECODE, Urbanic’s Savana, and more.
Among these is NEWME, a technology-driven, online-first fashion company launched just over two years ago. It has already become a multi-hundred-crore brand with an offline presence across nine Indian cities.
Founded in June 2022 by Sumit Jasoria, Vinod Naik, Shivam Tripathi, and Himanshu Chaudhary, the Bengaluru-based startup caters to women aged 16-24. Currently, the website features approximately 14,000 styles across apparel and accessories and boasts a consumer base of nearly 4 million.
Less than five months after the brand’s launch, it secured its first funding in November 2022. To date, NEWME has raised around $25.4 million across multiple funding rounds, primarily led by Accel and Fireside Ventures.
In an exclusive interview with IndiaRetailing, Jasoria, co-founder of NEWME, elaborates on the brand’s origin, its use of technology, online and offline expansion strategies, and more.
Edited excerpts….
What is the story behind NEWME?
I first met Tripathi in 2017 at a conference in Vietnam. Over time, we stayed in touch and became friends. When he was moving back to India in 2020, we began exploring ideas for potential collaborations. Around the same time, I met Naik through a mutual friend. By May 2021, the three of us started brainstorming various ideas and spent nearly 8–9 months conducting consumer research to identify opportunities for improvement.
We observed that India has a new class of emerging consumers who viewed fashion—and life in general—through a completely different lens than millennials. From shopping and travelling to friendships and social media, their approach was vastly distinct from what we had experienced growing up.
Later, we connected with Chaudhary, a technology expert, through another mutual friend. In March 2022, the four of us came together to establish NEWME. It took us four to five months to finalise the website and other preparations before officially launching in June 2022.
Initially, we had some funds from our own savings. Then, we secured a small amount of capital and gradually continued raising funds to grow the business.
Why is NEWME known as a fashion-tech start-up?
Our approach to fashion is fundamentally different from that of a traditional fashion company. At NEWME, technology and data form the backbone of every decision we make—whether it’s related to the supply chain, design, or product launches.
We release nearly 500 styles each week, all driven by a combination of data insights and creative design. Internally, we view ourselves as a technology and data company that happens to sell fashion.
How do you use tech in operations?
We are building advanced supply chain solutions, which allow us to connect with factories at a fast pace while maintaining industry-low minimum order quantities (MOQs) for each style. This enables us to launch products with minimal inventory, using predictive demand technology to create styles quickly in response to consumer trends.
Unlike traditional fashion companies that often hold six months’ worth of inventory, our ‘secret sauce’ is to operate with a lean inventory model to keep our brand fresh. Our largest team is dedicated to these areas, comprising nearly 25 engineers and data scientists. They are followed closely by our design and merchandising teams.
Where is NEWME‘s manufacturing done?
We handle both outsourcing and in-house manufacturing. We now have our own factory in Mumbai and also collaborate with third-party factories, though most of them are now exclusively aligned with us.
Any plans for new product categories?
Yes, we recently introduced accessories, which have been performing well. Now, we are working on launching perfumes and hair colours.
NEWME is not on e-commerce yet. Why?
Brands are not built on marketplaces, as they often reduce a brand’s identity to constant discounts, ultimately diminishing its value and integrity. That’s not our approach. We aim to create a lasting brand that offers great value without relying on frequent sales. We only hold annual sales once or twice a year, nothing more.
Recently, NEWME launched 90 minutes delivery in Delhi. Any plans to take this to other cities?
Most recently, this service has expanded to 26 pin codes across Delhi NCR, and Bengaluru. We will be piloting it in Mumbai as well. It’s still in the early stages and not fully operational yet. Unlike dark stores, we operate from a warehouse or a physical store.
What is NEWME’s online v/s offline sales ratio?
Currently, offline sales account for about 22% of our business and the rest is online. This ratio will change when we scale offline. It takes time, as opening new stores is a gradual process.
What are your offline expansion plans?
We have eleven stores across nine cities at the moment and plan to open two more within the next 30 days across Gurugram, and Pune. By the end of the financial year (FY24), our goal is to establish 15-20 stores.
By December of next year (2025), we aim to have around 40-45 stores, and by December of the following year (2026), we plan to reach about 70 stores.
Our store sizes range from 2,500 sq. ft. to 3,500 sq. ft. The capex varies depending on the store, with flagship stores having a higher cost. The cost typically ranges from Rs 80 lakh to Rs 1.2 crore per store.
While most of our stores are currently in malls, our first store in Surat is on a high street. We are expanding into both tier-one and tier-two cities.
Which market is showing the highest demand?
We see sales growth in cities like Delhi, Mumbai, and Bengaluru, as well as a growing market in the Northeast. We have a strong mix of tier-one, tier-two, and tier-three cities, with nearly 30% of our business coming from tier-three and below.
How big is your consumer base?
We currently have close to 4 million users, while the overall Gen Z population in India is estimated to be around 200 million to 300 million. So, we are still a small player in the market. Our goal is to reach 10 to 12 million registered users on the platform by the end of next year.
Any plans to go global?
There are no plans for international expansion in the next two to three years. We definitely aim to become a global brand, but it takes time to build the supply chain and infrastructure needed for global markets. In the next three to four years, we plan to take a significant step forward.
How was the brand’s financial performance in FY24?
We have been performing well, though I cannot disclose the exact numbers. This year, we are on track to grow by up to 3-fold, following a 7-fold growth last year. The numbers are certainly exciting, and we are set to reach a few hundred crore rupees in annual business this year.
Top three priorities?
Our first priority is aggressive offline expansion. The second focus is strengthening our supply chain in India—we are building more supply chain capabilities and setting up our own factories as we scale. Third, we are prioritising the growth of our technology and data science teams to drive innovation within the company.
NEWME’s ultimate vision?
The mission we are on is to build a global brand that originates in India. The country has not yet produced a fashion brand with international reach. That is what drives me every day to put in the effort. We aim to compete with brands like Zara and H&M in the future, particularly targeting Gen-Z women.
We are not just selling clothes; we are offering the dreams of a young woman in college who, despite having a limited budget, seeks confidence and still wants to look and feel her best.
