Aditya Birla Group’s TMRW Raises Rs 437 Crore from ServiceNow Ventures to Redefine Digital Fashion

Mumbai, August 13, 2025 – TMRW, the digital-first “House of Brands” venture of the Aditya Birla Group, has secured a landmark Rs 437 crore ($50 million) investment from ServiceNow Ventures, the venture capital arm of U.S.-based cloud computing giant ServiceNow. Announced on August 13, 2025, this maiden external funding round marks a significant step for TMRW, launched in mid-2022 under Aditya Birla Fashion and Retail Ltd. (ABFRL), as it aims to scale its portfolio of Gen-Z and Millennial-focused fashion brands and leverage cutting-edge artificial intelligence (AI) to transform India’s $35–40 billion fashion and lifestyle e-commerce market.

Strategic Investment: Fueling Digital-First Fashion

The infusion from ServiceNow Ventures, part of a Santa Clara-based software company renowned for its AI-driven cloud platform, will accelerate TMRW’s mission to build India’s largest portfolio of disruptor brands in the direct-to-consumer (D2C) space. TMRW’s portfolio includes digital-native brands like Bewakoof, Wrogn, The Indian Garage Co., Nobero, Berrylush, Juneberry, Natilene, Urbano, and Veirdo, catering to diverse fashion segments from casual wear to athleisure. The funding will support brand scaling, portfolio expansion, and integration of ServiceNow’s AI platform to enhance speed-to-market, optimize product assortments, and elevate consumer experiences across TMRW’s omni-channel footprint.

Prashanth Aluru, TMRW’s CEO and co-founder, emphasized the transformative potential of the partnership: “Our focus has been building a technology- and data science-led approach to scaling new-age fashion brands. ServiceNow’s agentic AI capabilities will augment our playbook, enabling us to leapfrog traditional fashion-industry value drivers and deliver next-gen consumer experiences.” ServiceNow’s Senior Vice President of Corporate Business Development, Philip Kirk, echoed this, stating, “TMRW is redefining India’s fashion landscape with a bold, AI-first approach, transforming every layer of the consumer experience.”

TMRW’s Vision: A Digital Fashion Powerhouse

Launched in May 2022, TMRW aims to create a $1 billion business by acquiring and incubating over 30 D2C brands within three years. Since its inception, it has partnered with eight digital-first lifestyle brands, achieving a revenue run-rate of Rs 700 crore by November 2022 and targeting Rs 1,500 crore within the next year. Key acquisitions include a Rs 200 crore controlling stake in Bewakoof, Rs 155 crore in The Indian Garage Co., and Rs 125 crore in Wrogn, backed by Virat Kohli and Accel. These moves have established TMRW’s presence across apparel segments like women’s western wear, kids’ wear, and denim, with plans to expand into beauty and personal care.

The company’s technology-led approach sets it apart. By leveraging ServiceNow’s AI platform, TMRW aims to streamline operations, from predictive inventory management to personalized consumer engagement, addressing the $15–20 billion addressable D2C market within India’s broader fashion e-commerce sector, projected to reach $35–40 billion by 2027.

Financial Context: ABFRL’s Broader Strategy

The funding comes amid ABFRL’s ambitious Rs 500 crore capital expenditure plan for 2025–26, aimed at turning around loss-making ventures like TMRW and TCNS Clothing. In Q1 FY26 (April–June 2025), TMRW reported a 38% revenue increase to Rs 197 crore from Rs 143 crore year-on-year, though its EBITDA loss widened 37% to Rs 63 crore, reflecting heavy investments in scaling. ABFRL, TMRW’s parent, posted a 9% revenue growth to Rs 1,831 crore but recorded a net loss of Rs 234 crore, impacted by store closures in its Pantaloon business and investments in digital ventures.

Despite these losses, ABFRL’s leadership remains optimistic, targeting Rs 21,000 crore in revenue by 2026 and anticipating EBITDA positivity (excluding TMRW) next year. The ServiceNow investment is seen as a vote of confidence in TMRW’s long-term potential, aligning with ABFRL’s strategy to triple scale and double profitability within five years.

Industry and Market Dynamics

India’s D2C fashion market is booming, driven by a young, digitally savvy consumer base. TMRW competes with players like Mensa Brands and GOAT Brand Labs, which follow a similar “house of brands” model pioneered by U.S.-based Thrasio. However, TMRW’s backing by the Aditya Birla Group, with its 50+ years of retail expertise, and its focus on AI-driven innovation give it a competitive edge. The collaboration with ServiceNow, a leader in agentic AI, positions TMRW to optimize supply chains and enhance customer engagement, critical in a market where 90% of retail remains offline.

The investment also reflects global confidence in India’s economic growth, despite challenges like Trump’s recent tariffs (25% on Indian imports, paused in July 2025) and calls to curb Indian tech hiring. India’s emergence as the top U.S. smartphone supplier in Q2 2025 and its role in launching NASA’s NISAR satellite highlight its rising global influence, creating a favorable backdrop for ventures like TMRW to attract foreign capital.

Challenges and Future Outlook

TMRW faces hurdles, including profitability pressures and competition in a crowded D2C space. Its EBITDA losses underscore the high costs of scaling digital brands, and macroeconomic uncertainties, such as U.S. trade policies, could impact export-driven growth. However, the ServiceNow partnership offers a technological moat, enabling TMRW to differentiate through AI-driven efficiency and consumer insights.

Looking ahead, TMRW plans to expand its portfolio, targeting 30+ brands by 2027, and deepen its omni-channel presence. The company’s synergy with ABFRL’s retail network and its focus on Gen-Z trends position it to capture a significant share of India’s burgeoning e-commerce market. Posts on X reflect optimism, with @CNBCTV18News noting the Rs 437 crore raise as a “game-changer for Indian D2C,” while @RetailGuru cautioned that “scaling profitability will be TMRW’s real test.”

Conclusion: A New Era for Indian Fashion

TMRW’s Rs 437 crore raise from ServiceNow Ventures marks a pivotal moment for India’s digital fashion landscape. By blending Aditya Birla’s retail legacy with ServiceNow’s AI expertise, TMRW is poised to redefine how fashion brands scale in a digital-first world. As India cements its global economic influence—from smartphones to space—ventures like TMRW signal a future where innovation and ambition drive the nation’s presence on the world stage, one stylish brand at a time.