Showroom B2B Clinches $6.5M Funding, Set to Expand its Phygital Footprint in Tier II & III Cities
Showroom B2B, a business-to-business startup catering to small retailers and wholesalers in tier II cities in India, has made headlines by raising $6.5 million (Rs 54.12 crore) in a pre-Series A funding round led by Jungle Ventures.
As per the startup, the freshly raised funds will be deployed to scale the firm’s phygital distribution model. The startup also plans to use the newly raised funds to open additional experience stores across tier II and III cities in India.
New investors Accion Venture Lab, Saison Capital, and ICMG Partners, as well as existing backers like Gemba Capital, Titan Capital, and Strive, along with debt partners Alteria Capital and Stride Ventures, also participated in the funding round.
Showroom B2B | Phygital Platform for the Indian Fashion Industry
Founded by Abhishek Dua and Shubham Gupta in 2020, Showroom B2B is a Noida-based business-to-business phygital platform that combines digital and physical markets to cater to small retailers and wholesalers in tier II cities in India.
With its distribution model combining digital and physical stores, Showroom B2B offers an efficient solution for sourcing, procurement, and distribution.
Speaking about the development, Abhishek Dua, Co-founder and chief executive officer of Showroom B2B, highlighted that their order sizes are consistently 5-10 times larger than competitors. As per Dua, their return rate is in single digits, a significant contrast to the industry norm of 25-30%.
Talking about the usage of funds, Dua added,
“This infusion of capital will give us a significant boost in scaling our operations to make an even greater impact in the untapped sections of the unorganized apparel market.”
As per the Noida-based startup, its asset-light business model gives retailers access to a broad inventory of competitively priced unbranded garments within their local communities.
Covering major apparel fashion categories like men’s, women’s, and children’s wear, Showroom B2B claims to have tied up with more than 500 garment manufacturers and 3,000 retailers.
Statement from the Investors
Commenting on the development, Vishesh Sharma, Vice President, India Investments, Jungle Ventures, highlighted that with major global apparel manufacturing clusters located in Indian cities like Bengaluru, Delhi-NCR, Surat, Ahmedabad, Tirupur, and others, apparel manufactured in India are going to continue gathering steam. Sharma also highlighted Showroom B2B’s capabilities, enabling these manufacturers to reach the market more efficiently, while also enabling customers to access a wider assortment of designs at competitive prices.
Sharma added,
“We believe the phygital approach adopted by the company will be the future of garment retail in the country and are excited to partner with the team on this journey.”
As per the startup, it is building the largest Phygital platform for India’s $108 Bn fashion industry by connecting Tier 2+ clothing retailers directly with small to mid-scale apparel manufacturers. Additionally, it provides all parties with solutions for distribution, credit, logistics, and marketing.
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