Hyderabad-based brand, Neeman, announced the successful acquisition of ₹35.5 crore in the Series B2 funding round. This new infusion of capital is also vital and a milestone for the startup, as it has already defined itself as a leader in the fashion of environmentally-conscious fashion since its opening in 2017. The existing fundraiser is perceived as a strategic follow-up to the previous Series B round of the company, which initially launched in June 2022. With these finances obtained through the efforts of a broad network of new and current supporters, Neeman’s is perfectly placed to enhance its presence in the market and polish its operational capacities in a new and highly competitive retail landscape.
Investor participants and capital infusion
The financing was formalised by the consent of the company board to issue 54,915 Series B2 compulsorily convertible preference shares (CCPS). These shares were valued at ₹6,465 each, which made it easy to raise ₹35.50 crore in total. What stands out with this round is the active involvement and dedication of the leadership of the company. Besides the institutional support, the board gave the co-founders, Taranjeet Singh Chhabra and Amar Preet Singh, 5,414 partly paid-up equity shares at the same price. The equal personal investments in the round by both of the founders indicated that they are confident about the direction of the brand in the long term and are committed to the sustainable mission of the brand.
Snam Solutions, through Muralidhar Dhuddu, ventured on April 19 with a large contribution of ₹16 crores. Other important investors were Grand Anicut and Sharrp Ventures, who contributed ₹7 crore and ₹5 crore respectively to the pool. The rest of ₹7.5 crore was also raised by a pool of other institutional and individual investors. This joint investment strategy highlights the wide popularity of the Neeman business model and its potential to find favor with large-scale venture capital and individual strategic partners.
This Series B2 tranche closure has led to Neeman getting an estimated post-money valuation of approximately ₹439 crore (approximately $49 million). Such a valuation indicates the consistent increase the brand has been experiencing throughout its decades of existence and its prospects of a larger scale in the future. Thus far, the startup has been able to raise in excess of $17 million toward total capital that gives it the required financial runway to compete with bigger players in the footwear business without compromising its values of sustainability and environmental responsibility.
The equity sharing of key stakeholders has been revised after this recent transaction. The company has a major 8.63% share in Grand Anicut. The other shareholders are Enam Investments of 4.76%, Snam Solutions of 3.64%, and Sharrp Ventures of 3.51%. These figures mean a balanced and cap table that gives the company a combination of financial control and strategic direction from the experienced players in the market.
Operational focus and financial performance
The new funds obtained are dedicated to the particular places that are most vital to the further evolution of the brand. Neeman’s intentions are to utilise the capital basically to fortify the working capital and sustain its various operations. Since it is a company that mostly operates under a direct-to-consumer (D2C) business model, the company has to maintain a healthy cash flow that will allow it to manage the inventory, marketing activities, and logistics behind a digital-first brand. The emphasis on operational efficiency will enable the company to streamline its supply chain and delivery system so as to be able to serve its expanding customer base.
With its headquarters based in Hyderabad, Neeman has earned a reputation for making environmentally friendly footwear out of sustainable resources. Although the brand started by being extremely strong online, it has been aggressively seeking an omnichannel approach by becoming increasingly offline. This two-sided strategy will enable the brand to appeal to the conscious customers on several touchpoints, which will be the convenience of online shopping and the physical experience of retail stores. This current physical growth is also likely to be backed by the funding as the brand tries to make itself more visible in major urban markets.
The financial performance of the Neeman leading up to this funding round demonstrates that it has a positive trend as far as revenue growth and fiscal discipline are concerned. The brand had revenue of ₹76.94 crore in the fiscal year 2024, which is 11.4% higher than the previous fiscal year, when it earned ₹69.05 crore. This expansion is a credit to the rise in consumer need for sustainable products and also to the brand’s capability to hold on to its significance in an evolving environment.
It is also important that the company has been making strides in reducing its losses. In FY24, the net loss that Neeman had to manage decreased by 14% and stood at ₹29.23 crore compared to ₹33.98 crore last year. Although the company has not announced its financial performance for its FY25, this decrease in losses indicates that the brand is shifting to a healthier and potentially more profitable business model. The emphasis on enhancing bottom-line performance and sustaining the top-line revenue is a priority issue among the management team who are using the Series B2 capital.
Conclusion
The recent Series B2 funding of Neeman indicates that the interest of investors in D2C brands with a focus on sustainability and innovation did not decrease. The brand has raised ₹35.5 crore and will have the resources required to move through the challenges of the shoe industry without falling out of line with its environmental foundations.
Having enhanced valuation, dedicated leadership, and a strategy of future operating as well as financial growth, Neeman is poised to further establish itself as the leader in the sustainable fashion segment of the Indian market. This investment not only serves the short-term working capital requirements of the brand but also strengthens the sustainability of the eco-friendly business models in the new retail environment.
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