Fashinza, a B2B supply chain marketplace for fashion brands, raises $100M – TechCrunch

 Fashinza, a B2B supply chain marketplace for fashion brands, raises $100M – TechCrunch


The pandemic affected the worldwide supply chain, with 60% of U.S. adults in a Gallup survey in August 2021 saying they hadn’t gotten a product they wanted in the past two months because of lack. Suffering the impact is the fashion industry, which employs millions of workers in retail stores, suppliers, and manufacturing factories around the world. Bangladesh, one of the largest exporters of ready-made garments, saw export revenue fall from $ 34.13 billion in 2018 to under $ 28 billion in 2020 as Western brands struggled with border restrictions. related to the pandemic.

Fashinza, a Dehli, India -based supply chain “marketplace” for fashion brands and retailers, was set up months before the demolitions. But CEO Pawan Gupta says the platform is designed to accurately manage these types of supply chain challenges by providing access to fulfillment options that are often not available to international companies.

“While exploring [the] business-to-consumer fashion ecommerce [industry]we are shocked by the snake supply chains, ”said Gupta, who co -launched Fashinza with Abhishek Sharma and Jamil Ahmad, told TechCrunch via email. “Even if brands mark their retail price at 75% to 80% margins, they still make about 8% to 10% profit and lose money due to high inventory wastage or loss of stock. [They] struggling with … opacity because of the many middlemen and their manufacturers thousands of miles away. “

Gupta describes Fashinza’s product as “delivery design” in the sense that it allows brands to not only find manufacturers and place multiple orders, but analyze fashion design trends. Customers can also use Fashinza to track time and action calendars, a tool used by the apparel industry to track manufacturing milestones to ensure on -time delivery.

Fashinza

Fashinza’s B2B supply chain marketplace.

On the production side, Fashinza partnered with factories to run its software stack, called FactoryOS, for sampling, inventory, and finance tasks. The software tracks the lifecycles of garments and uses the data to train algorithms for matching suppliers ’brands, Gupta said, and predicting metrics such as turnaround time.

In an endorsement of Fashinza’s approach to supply chain managementthe company announced today that it has raised $ 100 million in Series B funds ($ 60 million in equity and $ 40 million in debt) led by Prosus Ventures and Westbridge with participation from Accel, Elevation, and ADQ in a $ 300 billion valuation. The round brings Fashinza’s total raise to $ 135 million, which Gupta said is used to refine the company’s supply chain technology and expand into new markets, including the purchase of raw materials.

Business-to-business markets are here to stay. We can’t imagine a world where, even in 2030, brands will have to make 100 calls, send 200 emails, and wait six months for [a] bulk order, ”Gupta said. “The whole experience is broken and doesn’t work in this fast -paced world. But the solutions … need to be vertical and highly tailored to … industries. “

An expanding market

Before Fashinza started, Gupta founded Curofy, a social networking app for doctors, while Sharma previously helped find ecommerce retailer OfferBean. Together with Ahmad, they launched Fashinza in 2020, which now employs 200 people. Gupta expects the number of people to expand to 250 by the end of the year.

Fashinza makes money by charging suppliers a “usage-based” fee per order and by providing value-added services such as logistics, fintech, and business-to-business payments to brands and manufacturers. Gupta stated that Fashinza will be able to achieve cost savings by improving unit economics on the supply side, exploiting “unused capacity” and “improving production efficiency” through technology and data.

Sure, Fashinza has no shortage of competition in a supply chain management market that Statista predicts could be worth $ 30.91 billion in 2026, up from $ 19.58 billion in 2022. Shipium provides ecommerce retailers like Amazon with supply. chain tech, while ShelfLife offers a marketplace of raw material suppliers based on what brands really need. There are also sustainable search platforms like Sourceful, which is putting a place alongside supply chain finance platforms including Tradeshift.

Gupta argues for that Fashinza’s focus on the fashion industry is enough to differentiate it, focusing on customer reach to date. He admitted that more than 200 brands and 150 factories are currently using the platform, which is mostly concentrated in India, Bangladesh, China, US, UK, United Arab Emirates, and Vietnam.

Historically, the challenge has been to convince fashion and apparel brands to adopt technologies to modernize legacy processes, including sourcing. For example, a 2020 McKinsey study found that while 74% of brands expect digitization of product development and sourcing to accelerate, only 20% plan to make the technology for country and supplier selection is a common practice.

But Gupta believes that Fashinza has the things – and the financing – to succeed. In fact, the startup has benefited from continued growth in investment in the supply chain management market, which has seen a $ 11.3 billion injection from venture firms last year.

“The solution provided by Fashinza is essentially technology-driven, which sets us apart from our competitors. Consider the troubles that Uber and Amazon have brought to their respective industries. Fashinza has something similar to do in the sector. making business-to-business clothes, ”Gupta said.“End-to-end production can be managed through Fashinza’s platform with… transparency and control-with no need for sourcing managers to leave their offices, no need to rely on multiple middlemen, and no scope of the unannounced delays. ”



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