Local retailers can often become suppressed in the apparel industry due to a lack of transparency in their interactions with manufacturers and unreliability of product quality. Moreover, they are under a constant struggle with the lack of resources to expand their presence. With an aim to empower small retailers, wholesalers and to restore the scales of balance; Showroom B2B, a platform for unbranded garment supply chain, secured $6.5 million in a Pre-Series A funding round led by Jungle Ventures. This round also saw participation from Accion Venture Lab, Saison Capital, and ICMG Partners.
Additionally, the platform’s existing investors also participated; namely Strive, Gemba Capital, and Titan Capital, and debt partners Alteria Capital and Stride Ventures.
Showroom B2B intends to use the fresh capital to expand its phygital distribution model; it aims to scale the company’s experience store model across Tier II and III markets in India. Moreover, the startup plans to improve its private labelling capabilities and supply premium and affordable fashion to retailers.
“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,” shared Vishesh Sharma, VP of India investments at Jungle Ventures, regarding the round.
Recently, Jungle Ventures also announced the launch its new programme to aid entrepreneurs, FirstCheque@Jungle.
About Showroom B2B
Launched in 2020, Showroom B2B was established through the efforts of IIM Lucknow alumni Abhishek Dua and Shubham Gupta. The platform streamlines the retailing and procurement processes for fashion retailers and wholesalers.
It allows retailers to interact directly with manufacturing samples before placing bulk orders. It has partnered with over 500 garment manufacturers and 3,000 retailers. The platform operates an app-based ordering system for doorstep deliveries.
“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,” shared co-founder Abhishek Due regarding the fundraiser.
Currently, the startup operates three experience stores in different geographies. Showroom B2B’s asset-light business model allows retailers access to a broader unbranded garment inventory in their local communities.
With India’s unbranded garment wholesale market set to surge from $50 billion to $80 billion in the next five years, the startup is aiming to hit promising heights.