Fashion tech start-up Virgio raises $37 million amid funding winter
At a time when the start-up ecosystem is affected by the funding winter, former Myntra CEO Amar Nagaram's fashion start-up Virgio has bagged big money. In its Series A funding round co-led by Prosus Ventures, Alpha Wave, and Accel, the company raised $37 million at a valuation of $161 million (post-money). To recall, Virgio was launched in early 2022.
Why does this story matter?
India's fashion space is still dominated by unbranded apparel. Virgio aims to tap into that space by making branded clothing accessible to everyone. The company is offering a full-stack approach that aims to reduce the lead time from eight-ten months to one month. This approach might interest the younger generation. The company's approach has invited comparisons to the Chinese fashion behemoth Shein.
Virgio is backed by Binny Bansal, Bhavish Agarwal, Kunal Shah
Virgio aims to build a global fashion brand from the South Asian market. The company is backed by a line-up of celebrity angel investors, including Flipkart co-founder Binny Bansal, Ola co-founder Bhavish Aggarwal, Cult.fit co-founder Mukesh Bansal, Cred founder Kunal Shah, and Swiggy co-founder Sriharsha Majety, among others. Nagaram founded the fashion tech start-up in early 2022 after quitting as Myntra's CEO in 2021.
The company has a tech-first model
Virgio is a tech-based fashion company that uses technology throughout the design, manufacturing, and purchasing process. The company said that it aims to streamline the fashion lifecycle and enable a real-time fashion offering. The company has a tech-first model. It uses its tech foundation to understand evolving trends and demand. This information is later fed into the supply chain to enable real-time offerings.
Virgio aims to make runway fashion accessible to everyone: Nagaram
Virgio targets Gen Z and late millennials. The company will allow designers access to consumer preferences in real time. It also envisions a tech-led network of factories that will let designers build prototypes quickly, get customer feedback, and begin production. "Virgio is pioneering the test and scale method, making runway fashion accessible and affordable for all consumers, while eliminating excess inventory for manufacturers," said Nagaram.
The app already has over 100,000 downloads, says Virgio
Virgio can be accessed by downloading its eponymous app. The start-up claims that it has over 100,000 downloads and over 20,000 daily active users. The company offers a wide range of selections in casual, party, and ethnic wear. There are regular updates to the collection on offer, large discounts, and free shipping as well.
