A fresh group of investor-supported startups is applying the rapid-commerce strategy to fashion, providing clothes, shoes, and accessories within an hour in major urban centers. Yet, significant financial outflows and inconsistent market demand are sparking concerns over whether this business model can expand effectively.
Firms like Knot, Slikk, and Zilo, as well as fast-delivery units from established online retailers such as Myntra, Ajio, and Newme, are spending heavily on promotions to draw in buyers. Industry sources indicate that these rapid-fashion ventures collectively incurred losses of $2-2.5 million in January, increasing to $3 million by March.
Even with these expenditures, the sector is drawing investor interest, with expectations that it could represent the next major advancement in quick commerce. Zilo secured $15.3 million in funding from Peak XV in February. Slikk, supported by Lightspeed and Nexus Venture Partners, is negotiating an additional $15-20 million, according to reports from March. Knot obtained $5 million led by 12 Flags in December.
This area developed from general quick-commerce services like Zepto, Instamart, and Blinkit, which initially sold simple fashion products for urgent needs. Specialized fashion platforms then appeared, featuring broader selections for events, professional attire, and celebrations with speedy shipping.
Recently introduced fast-fashion site Klydo provides items in 15-30 minutes in Bengaluru, while Newme’s Zip service targets Gen Z with 30-minute deliveries. Men’s brand Snitch has rolled out Snitch Quick. Myntra’s M-Now, launched in 2024, accounted for 10% of orders in active areas by last November. To address return issues, these companies are introducing try-before-you-buy features and virtual fitting tools.
Investors see substantial opportunities in this expanding field, with space for multiple winners. Sunitha Viswanathan, a partner at Kae Capital—which backed Knot in December—noted that online fashion has seen little innovation in the past ten years. She pointed out that while e-commerce offers extensive selections, the delays in shipping and uncertainty about sizing fail to appeal to younger consumers motivated by spontaneity and social trends.
Kae Capital estimates the current quick-commerce fashion market at $1.7-2 billion, with potential for much greater expansion. Experts emphasize that achieving sufficient order volume to support the required setup in limited areas is essential for success.
Dipanjan Basu, cofounder and partner at Fireside Ventures—which invested in Newme—stressed that superior products and variety must complement convenience for the model to thrive.
Adapting to shifting style trends poses another key challenge, according to specialists. Companies are employing AI to forecast trends and needs, aiming to optimize storage and stock. However, these technologies have not yet significantly lowered return rates.
An investor in one such firm, speaking anonymously, highlighted ongoing inventory difficulties, noting that AI has not resolved them effectively. Customers expect vast choices, similar to traditional fashion platforms.
While many in the space rely on dedicated warehouses for stock, some like Zilo and Booon collaborate with retail outlets to expand their offerings. Zilo founder Bhavik Jhaveri explained that after starting with warehouses, they incorporated brand stores to provide more options, which is crucial for users. He added that warehouses limit selections to 7,000-8,000 items, and positioning as a last-minute option typically yields only one or two purchases per customer.
Booon, established by former Myntra leader Arun Kumar, operates without warehouses entirely. Kumar stated that the category demands extensive variety to meet diverse needs across events and budgets. The company is currently seeking its initial investment round.
