Showroom B2B, a B2B marketplace specializing in unbranded clothing, has successfully raised $6.5 million in a Pre-Series A funding round. This funding was spearheaded by Jungle Ventures and saw active participation from Accion Venture Lab, Saison Capital, and ICMG Partners.
The funding round also featured continued support from existing investors such as Strive, Gemba Capital, and Titan Capital, along with the ongoing participation of debt partners Alteria Capital and Stride Ventures.
With the capital secured, the startup is poised to amplify its phygital distribution model and establish new experiential stores throughout India. Showroom B2B is committed to bolstering its private label capabilities and extending access to high-quality, cost-effective fashion for retailers in Tier II cities and beyond.
Established by IIM Lucknow graduates Abhishek Dua and Shubham Gupta in 2020, Showroom B2B operates three experience stores. These stores serve as a platform for fashion retailers to interact with manufacturing samples before placing bulk orders. By forming partnerships with over 500 garment manufacturers and 3,000 retailers, the startup simplifies transactions and ensures doorstep deliveries through its app-based ordering system.
Speaking on the fundraise, Dua, said, “Our unwavering commitment to removing middlemen and empowering small retailers and wholesalers, who were previously excluded, has yielded impressive results.”
“Notably, our order sizes are consistently 5-10 times larger than competitors, and our industry-low return rate is in single digits, a stark contrast to the industry norm of 25-30%. But we recognise that there is still much work to be done, and that’s where our new investment comes into play. 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 unorganised apparel market,” he further added.
Amidst the challenges faced by wholesalers in keeping up with an expanding range of designs due to growing inventories, retailers often find themselves making frequent trips to sourcing clusters to replenish their store stocks. The startup asserts that its asset-light business model addresses this issue by providing retailers with access to a more extensive selection of competitively priced unbranded garments right within their local communities.
Vishesh Sharma, VP of India investments at Jungle Ventures, added, “With major global apparel manufacturing clusters located in Indian cities, domestically manufactured apparel is going to continue gathering steam. Showroom B2B enables these manufacturers to reach the market more efficiently while enabling customers to access a wider assortment of designs at competitive prices.”
As per the startup’s projections, India’s unbranded garment wholesale market is expected to increase from $50 billion to $80 billion over the course of the next five years.