Bangalore-based fashion startup Virgio raises USD 37 million in funding

Virgio, a fashion business co-founded by Amar Nagaram, former CEO of Myntra, has secured USD 37 million in a fresh funding round as it seeks to develop “a worldwide fashion brand” from the South Asian market.

Virgio’s Series A fundraising was led by Prosus Ventures, Alpha Wave, and Accel and valued the one-year-old firm at USD 161 million (post-money). (Virgio claims to have been created this year but has yet to disclose the size of its seed fundraising round.)

According to Virgio, customers’ fashion preferences are fast shifting, and they are dissatisfied with the incumbents’ offers. It seeks to address this by expediting design, production, and buying processes in “real-time,” providing a platform for Gen Z and late millennials to explore and purchase new stylish items.

Virgio has an extensive collection of casual, party, and ethnic apparel. Every week, new items are added, and clients enjoy substantial discounts and free shipping.

Some have drawn analogies between the startup’s strategy and that of the giant Shein.

“Traditionally, the fashion business has functioned on depth and discount models,” said Nagaram, Virgio’s founder and CEO, in a statement.

“At the center of Virgio is the tech foundation, continually listening to emerging trends on social media platforms and anticipating the need for each trend. This is then integrated into our flexible and responsive supply chain, allowing us to produce the most fashionable, exquisite, and yet affordable rangein near real-time. Thus, Virgio is pioneering the test and scale strategy, making runway fashion accessible and cheap for all consumers while minimizing excess inventory for manufacturers,” said Nagaram.

Head of India Investments at Prosus Ventures, Ashutosh Sharma, said in a statement:

“There is a big unmet market for branded garments in India currently. For example, branded apparel accounts for only 25% of women’s fashion. The Indian fashion sector is thus at a tipping point, driven by shifting customer tastes as a result of social media impact, an essential Gen-Z trait to individualize as a form of expression, and the integration of social commerce with social media platforms.”

According to the business, its full-stack strategy allows it to reduce the traditional lead time of eight to ten months to only one month. According to the company, its eponymous software has already received over 100,000 downloads. (On Sensor Tower, the app displays very few metrics since it is still too tiny.)

Mukesh Bansal, Kunal Shah, Binny Bansal, Vidit Aatrey, Saif Ali Khan, Sriharsha Majety, Bhavish Aggarwal and Sameer Nigam were among the other entrepreneurs that participated in the round.

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