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Fashion Startup Virgio Secures $161 Million in New Funding, Led by Former Myntra CEO

Amar Nagaram, previously the CEO of fashion startup Myntra, has co-founded a new firm called Virgio, which has just secured $37 million in funding to launch what it envisions as a “global fashion brand” within the South Asian market.

The Series A fundraising for Virgio was led by Prosus Ventures, Alpha Wave, and Accel, valuing the year-old company at $161 million post-money. Although Virgio claims to have started operations in 2016, details about its initial funding have not been disclosed.

Virgio aims to address the rapidly evolving fashion tastes of consumers, particularly those of Generation Z and later-era millennials, who are reportedly dissatisfied with current market offerings. The company plans to offer a central hub where these consumers can browse and purchase the latest fashion trends.

The startup features an extensive collection of formal, special occasion, and ethnic apparel. New products are added weekly, and regular customers can benefit from significant discounts and free shipping. Some have likened Virgio’s business strategy to that of the major retailer Shein.

In a statement, Virgio CEO and co-founder Amar Nagaram explained, “Historically, the fashion industry has operated on deep discount models. The technology backbone of Virgio continuously monitors social media to anticipate consumer demand for new trends in the market. This information is integrated into our agile and responsive supply chain, enabling the most innovative, sophisticated, yet affordable range possible. Virgio is pioneering the test-and-scale approach, making runway fashion accessible and affordable for all consumers while eliminating surplus inventory for manufacturers.”

Virgio claims to have significantly reduced the traditional lead time of eight to ten months to just one month through its full-stack approach. The company reported that more than 100,000 copies of its namesake app have been downloaded. However, the app’s metrics remain imprecise on Sensor Tower as it is still in beta.

India represents a vast untapped market for branded clothing. For instance, only about 25% of women’s apparel is produced by major brands. Ashutosh Sharma, Head of India Investments at Prosus Ventures, commented, “The fashion industry in India is at an inflection point, driven by changing consumer preferences influenced by social media, a key characteristic of Gen-Z to individualize as a form of expression, and the integration of social commerce with social media platforms.”

Sharma further emphasized the strength of Virgio’s founding team, noting, “The startup’s experienced founding team is uniquely positioned to capture a significant opportunity in India’s apparel sector, and we are confident in Virgio’s tech-first approach.”

The funding round also saw contributions from prominent entrepreneurs, including Mukesh Bansal, Kunal Shah, Binny Bansal, Bhavesh Agarwal, Vidit Aatrey, Saif Ali Khan, Sriharsha Majety, and Sameer Nigam, among others.

With this substantial investment and strong backing from industry leaders, Virgio is poised to revolutionize the fashion landscape in South Asia by leveraging technology to deliver the latest trends quickly and efficiently, catering to the dynamic preferences of today’s fashion-conscious consumers.