Mumbai-based B2B manufacturing startup Groyyo has closed its Series A round of funding worth $40 Mn in a mix of debt and equity. Marquee investor Tiger Global led the round while existing investors Alpha Wave, Sparrow Capital and Stride Ventures also participated.
Debt players such as Blacksoil and Capsave Finance provided the debt part of the round. Further, angel investors Bahram Vakil and Vineet Gautam also participated.
Groyyo will use the funds to scale the team across manufacturing clusters in India and Bangladesh and key demand belts in the United States and European Union. It will also invest in product and technology development to create a more efficient ecosystem.
Founded in 2021 by Subin Mitra, Pratik Tiwari and Ridam Upadhyay, Groyyo enables SME manufacturers in fashion and lifestyle categories to access global markets and source cheaper raw materials. Further, the startup offers multiple tech products for better digitisation of the manufacturing process.
Groyyo claims to have more than 400 manufacturers as its clients across the US, EU, MENA and North America, across more than 150 product categories. It claims to have an annualised topline of more than $100 Mn.
The startup’s tech platform includes three apps, such as:
Brands App: Offers styles, easy RFQ placement, and real-time tracking of orders to brands worldwide
Factory App: Acts as an operating system for MSME factories and allows controlling the factory from a mobile phone
Fabric App: Enables manufacturers to procure raw materials
Subin Mitra, cofounder and CEO of Groyyo, said, “The SME Manufacturing ecosystem in the fashion & lifestyle segments across South Asia is extremely disaggregated yet at a tipping point.”
“Our vision at Groyyo is to partner with these 20 Mn + SME Manufacturers in their quest to scale their business,” Mitra added.
Griffin Schroeder, partner, Tiger Global, noted that the sourcing market for fashion and lifestyle goods is poised for a transformation as the supply chains for the same move to South Asia.
“We are excited to support Groyyo’s vision to build an efficient, tech-enabled supply chain and are impressed with its traction so far,” Schroeder said.
Groyyo said that it is targeting the $120 Bn SME manufacturing market, which is set to grow 5X by 2025. It aims to reduce operational inefficiencies within the industry where a majority of the players operate at barely 50% capacity utilisation.
Groyyo competes directly with B2B manufacturing unicorn Fashinza in this space, which had raised $100 Mn last month in a Series B round. Both of the startups looking to tap into the potential of the 20 Mn SME manufacturers in the country by helping them get access to both raw materials to make products and markets to sell them.
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Mumbai-based B2B manufacturing startup Groyyo has closed its Series A round of funding worth $40 Mn in a mix of… NewsInc42 Media