London-based women’s fashion e-tailer Urbanic has closed on a $150 million Series C funding round.
Investors in the raise include Switzerland’s Mirabaud Lifestyle Impact & Innovation Fund, New York-based public-private hybrid investment firm D1 Capital Partners, JAM Fund and other global investors and European luxury fashion families. Previous backers include Nexus Venture Partners and Sequoia Capital.
Urbanic serves the fast-growing 1.4-billion-strong Indian consumer market. Founding partner James Wellwood, who helped launch the business back in 2019, described Urbanic as “predominantly a technology and AI business,” in conversation with Columbus Consulting, the retail transformation advisory, last month, saying sustainability is “fundamental to how we can best address the fast-changing and ever-changing needs of the customer.”
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The four-year-old startup plays in the fast-fashion sandbox dominated by H&M and Zara by recently disrupted by the likes of digitally nimble upstarts from Shein to Temu. Skinny jeans sell for 1,490 rupees, or about $18 dollars. The price of a ruffle A-line dress is 1,990 rupees, or nearly $24, while a sports bra goes for 590 rupees, little more than $7.
In true disruptor fashion, Urbanic claims it leans on artificial intelligence to churn out a steady stream of new designs and speaks of a highly efficient Shein-style supply chain.
Wellwood told India’s Economic Times in August that the company, which recently delisted from Flipkart to focus on direct-to-consumer, plans to invest $50 million in India. He also hinted that the company might open popup stores to engage with customers, similar to Shein’s recent approach.
In addition to denim, dresses and athleisure, Urbanic also carries knitwear, swimwear, outerwear and loungewear.
“We launched Urbanic in 2019 with the simple idea that clothing does not need to be expensive to be differentiated, stylish, and socially responsible,” Wellwood said. “We will continue to leverage groundbreaking technology and partnerships with manufacturers and suppliers who comply with the highest standard of international working conditions that protect our people and our planet.”
The Urbanic website states that the company prioritizes “inclusivity and a mindful approach to fashion. We believe in making cool, accessible, and well-made clothing for everyone, while also encouraging our customers to shop consciously.”
The company said it makes apparel that is “trendy, but not fleeting.” Urbanic said it’s looking at ways to facilitate donation or recycling to keep its products out of the landfill.
New social responsibility initiatives include an Urbanic Oasis collaboration with the NGO Florestas Inteligentes to plant 1 million trees in Latin America and reach other developing countries in the next five years. It also is collaborating with Earthangels Welfare Foundation to launch a program teaching English to children and youth in economically deprived areas. And it is collaborating with Pequeños Hermanos Mexico educate underprivileged kids.
The company is also exploring biodegradable and recycled packaging materials to reduce plastic waste and become plastic-neutral.
Urbanic will use some of the $150 million to advance its proprietary AI technology, and further its socially responsible value chain.
Additional reporting by Jessica Binns.
