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

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

The Potential backing that is new simply per week after Newme launched it had raised $5.4 million in seed funding led by Fireside Ventures.

Newme offers its clothing that is rapidly-changing online and through offline channels, targeting India’s Gen Z consumers with average order values between $18-30. The startup, founded in 2022, claims to have served 350,000 customers and offer 500 new designs weekly at an price that is average of $10.

Accel’s interest uses it formerly backed Virgio, another Indian online fashion merchant later pivoted.

The Fast-fashion space that is e-commerce gained ground in India recently as local startups take inspiration from global fast-fashion pioneers Zara, H&M and Uniqlo. Top player Flipkart leads the category but faces competition that is mounting Ambani’s Ajio, which includes amassed about 30per cent share of the market, in accordance with analysis company Bernstein. E-commerce rival Amazon can be seeking to develop its fast-fashion operation up, according to job postings.

Shein, which was earlier banned by India, is set for a comeback with a joint venture with Reliance, the two firms said year.

Accel that is last And Newme did respond to a n’t request for comment.(*)