ServiceNow Ventures Invests in TMRW: A Strategic Move for Digital-First Fashion
Venture Capital Firm in Silicon Valley Pours $50 Million into ABFRL's Digital-Centric Investment Portfolio, TMRW
In a significant development, Aditya Birla Fashion Retail Ltd's (ABFRL) digital-first brands platform, TMRW, has secured an investment of Rs 437 crores ($50 million) from ServiceNow Ventures. This investment marks ServiceNow Ventures' first investment in TMRW and is part of its commitment to invest $150 million in mid-to-late-stage companies with innovative technologies across enterprise software.
TMRW, a digital-first fashion venture of the Aditya Birla Group, was launched in mid-2022 and manages a portfolio of fashion brands such as Bewakoof, Wrogn, The Indian Garage Co., and Nobero. The primary target of these brands is Gen Z and millennial consumers, catering to them through both online and offline channels.
ServiceNow Ventures, the venture capital arm of ServiceNow, a US-based software company, focuses on investing in companies with innovative technologies, particularly in enterprise software. The investment in TMRW is part of its strategic approach to support innovative ventures.
The investment of Rs 437 crores is subject to customary closing conditions, indicating that it is pending regulatory approvals or other routine formalities. The funds raised will be used to expand TMRW's portfolio of digital-first brands, further solidifying its position in the Indian fashion market, which is expected to grow significantly in the coming years.
The partnership between TMRW and ServiceNow aims to leverage ServiceNow's AI and automation capabilities to enhance TMRW's operational efficiency. This includes improving speed-to-market, creating targeted product assortments, and enhancing consumer experiences across its omni-channel network.
TMRW's strategy focuses on building a technology- and data science-led approach to scaling new-age fashion brands. The partnership with ServiceNow will help TMRW accelerate this strategy, leveraging AI for more sophisticated consumer engagement and faster market adaptation.
Despite the growth in earnings, ABFRL's net loss remained steady around Rs 234 crores due to depreciation costs. The growth in ABFRL's net revenues was primarily led by the growth in its ethnic segments and TMRW. ABFRL's ethnic businesses grew 25% led by the designer-led brand portfolio, which grew 79% on year. Earnings before interest, tax, depreciation, and amortization grew 38% to Rs 169 crore.
Pantaloons, another segment of ABFRL, registered a decline of 1% due to store closures and a shift in the Eid festival. As of June 30, 2025, ABFRL had a retail presence across 1,168 stores.
Shares of ABFRL were trading up 1.1% on the Bombay Stock Exchange today at 75.52 rupees. The investment comes at a time when the Indian fashion and lifestyle e-commerce market is expected to reach $35-40 billion by 2027, with the D2C (direct-to-consumer) segment offering significant growth opportunities. By integrating ServiceNow's AI capabilities, TMRW aims to deliver next-generation consumer experiences, enhancing its competitive edge in the market.
Technology is a key focus of ServiceNow Ventures, as evidenced by their investment in TMRW, a digital-first fashion venture. This investment will help TMRW, part of the Aditya Birla Group, implement ServiceNow's AI and automation capabilities to improve operational efficiency and deliver next-generation consumer experiences.
