Gurugram-based business-to-business (B2B) marketplace Fashinza, run by Smartchain Innovation Pvt Ltd, has raised about $30 million (nearly Rs 247 crore) in a secured loan from Liquidity Group and its Singaporean subsidiary fund Mars Growth Capital, to fund its working capital needs.
These funds will be channelled to fuel expansion into international markets including US, Gulf and Europe.
“With their cross-border financing solutions and knowledge of navigating international markets, we can penetrate new markets and provide our manufacturing solutions to clients worldwide,” Abhishek Sharma, the co-founder of the Fashinza said.
The fashion supply chain marketplace, which counts Accel, Alteria Capital, Prosus, and Westbridge Capital Partners among its investors, raised its first purely debt funding with this transaction.
The firm’s latest backer, Mars Growth Capital and Liquidity Group was founded in 2018 and provides growth capital through funds focused on the US, Asia-Pacific, Europe, and the Middle East.
In its last equity capital raise in May last year, Fashinza secured nearly $100 million in a mix of equity and debt in its Series B round, at a valuation of about $400 million, onboarding Westbridge Capital Partners and Prosus Ventures on its cap-table, VCCircle had reported.
The company raised $20 million in its Series A round in August 2021, preceded by a $2.6 million seed round from Accel and Elevation Capital in January last year.
Founded in 2020 by Sharma, Jamil Ahmad, and Pawan Gupta, Fashinza connects family-run small and mid-sized audited factories via its artificial intelligence-driven platform. With a roster of more than 250 manufacturers across India, Bangladesh, China and Vietnam, the company currently serves 200 brands across six countries, including the US, Canada, UK and UAE.
Among its key clients, the firm has served fashion brands including Forever21, Nykaa, The Souled Store, Cilory, among others.
The firm’s net revenue from operations ballooned in FY22 to touch Rs 30.6 crore, rising over 2x from Rs 12.7 crore in the preceding year. Its net loss shrunk to Rs 5.4 crore against Rs 6.3 crore in FY21, data provided by VCCircle’s data platform VCCEdge showed.