Excel eyes new India fashion e-commerce with Numi

Excel, an early investor in Indian e-commerce giants Flipkart and Myntra, is preparing a new fashion e-commerce bet in India, while competition has intensified with the recent expansion of Mukesh Ambani’s Ajio platform.

Accel is in advanced talks to lead a $15-20 million funding round in Numi, an Indian fast-fashion e-commerce startup, according to four people familiar with the matter. The proposed funding would value Numi, dubbed “Sheen for India” by some backers, at around $83-85 million post-money, one of the sources said.

The potential new backing comes just a week after Numi announced it had raised $5.4 million in seed funding led by Fireside Ventures.

Numi sells its fast-paced clothing line through online and offline channels, targeting India’s Gen Z consumers with an average order value between $18-30. The startup, founded in 2022, claims to have served 350,000 customers and offers 500 new designs weekly at an average price of $10.

Accel’s interest comes after it previously backed Virzio, another Indian online fashion retailer, which later backed out.

The fast-fashion e-commerce sector has recently taken hold in India as local startups take inspiration from global fast-fashion pioneers Zara, H&M and Uniqlo. Top player Flipkart leads the category but faces increasing competition from Ambani’s Ajio, which has captured nearly 30% market share, according to research firm Bernstein. E-commerce rival Amazon is also looking to build out its fast-fashion operation, according to the job posting.

Sheen, which was earlier banned by India, is set to make a comeback with a joint venture with Reliance, both companies said last year.

Excel and Numi did not respond to requests for comment.