Nagaram’s new business – a fast fashion platform for Gen Z – is expected to be valued at $150-160 million post-investment, these people said. Nagaram, who left Flipkart-owned Myntra last December as managing director, is set to launch the company later this month and named it Virgio – hosted by Ameyam Enterprises.
Currently, the app is in beta testing, with users being placed on a waiting list before an official launch. ET reported in January that Alpha Wave (formerly Falcon Edge) and Accel had completed their $25-30 million round at a $100 million valuation. The Prosus Ventures investment is also part of the Series A funding, but the round is structured in multiple tranches and Prosus comes in at a higher valuation than previous investors.
“The first round is structured in several tranches like series A1, A2, etc. Prosus Ventures is in the final stage of signing the deal. As the platform will launch soon, it has reached a valuation of over $150 million with Prosus,” said one of the people briefed on the matter. With Prosus Ventures joining Virgio, the size of the round could increase by around $10 million.
This comes at a time when there is a visible slowdown in closing deals on attractive terms at all stages. Once officially announced, this will be one of the biggest first rounds of institutional funding for a new company.
Nagaram declined to comment. A spokesperson for Prosus Ventures said it does not comment on market rumors and speculation.
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Mukesh Bansal, founder of Cultfit and chairman of Tata Digital is also an investor in the company, as ET previously reported.
Virgio de Nagaram is considered the “Shein of India” by people who have reviewed his plans and are familiar with the company’s activities. Virgo should focus on customizing consumer needs for fashion products. It will be based on the consumer-manufacturer model. “The Virgio app represents the dawn of a new social commerce brand,” according to the description on its website.
“It’s similar to Shien from India with a lot of focus on technology. They are trying to get into fast fashion manufacturing based on demand. Trends are changing fast and the idea is to meet that demand Gen Z and new age consumers – who are also very young,” said one of the people mentioned above.
Shein had become popular in India but had to shut down its operations here last year following a government ban as part of a wider crackdown on Chinese apps.
Prior to starting Virgio, Nagaram worked at Flipkart for nearly seven years before moving to Myntra in 2019. He was elevated to CEO of the fashion retailer following the departure of its former chief executive Anath Narayanan following the acquisition of Flipkart by Walmart in 2018.