Indian apparel brand Newme is expanding its brick-and-mortar footprint across secondary cities to reach young female shoppers and achieve break-even this year.

The Bengaluru-based fast-fashion startup recorded revenue gains through the financial year ended March 31, 2025, and is pushing into regional markets where digital sales are accelerating ahead of physical retail supply.

Chief executive officer and co-founder Sumit Jasoria said the company is opening stores in cities that established apparel chains often overlook. The brand focuses on affordable Western wear designed for Gen Z women.

Physical expansion is targeting tier-two and tier-three centers, including Ahmedabad and markets across northern India, where online customer acquisition has outpaced physical retail space.

“Ahmedabad is a market which is underserved by every brand. North is a market underserved by every brand. We feel there is a very big space for us to go and build a very big brand there,” Jasoria said.

Opening physical stores across non-metro cities lowers customer acquisition costs compared to pure-play online marketing, but it introduces fixed overheads and inventory risks.

For retail landlords in secondary Indian cities, fast-fashion brands targeting young shoppers offer high footfall and reliable rental yields. The risk for Newme sits in managing inventory turnover across a wider physical network while keeping prices low enough to retain Gen Z buyers.

Direct-to-consumer apparel labels across India have increasingly moved offline after reaching digital growth ceilings. Rising digital ad rates on social platforms have made pure-play online customer acquisition prohibitively expensive.

By setting up storefronts in high-density shopping districts, Indian fashion startups are converting digital brand awareness into immediate cash flow, mirroring strategies deployed by regional value-fashion competitors.

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