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India’s Zyod secures a huge $18M to expand tech-fashion globally.

ByYasmeeta Oon

Jun 25, 2024

India’s Zyod secures a huge $18M to expand tech-fashion globally.

Zyod, an innovative Indian startup, is revolutionizing the global fashion industry with its advanced tech platform designed to streamline the entire design-to-delivery process for fashion brands worldwide. The Gurugram-based company recently secured $18 million in a Series A funding round aimed at bolstering its international presence across over 40 countries.

Founded in early 2023 by Ankit Jaipuria and Ritesh Khandelwal, Zyod is rapidly becoming the backbone of fashion manufacturing with its sophisticated Enterprise Resource Planning (ERP) software. Described as the “brain of manufacturing,” Zyod’s platform enables factories to maximize their production capabilities by providing detailed guidelines on manufacturing processes.

The platform addresses a significant challenge in the Indian manufacturing sector, where over 80,000 small and medium factories operate at less than 33% capacity utilization. Zyod’s ERP system helps these factories optimize their output by offering precise instructions on material usage and garment assembly required by global fashion brands.

Ankit Jaipuria, co-founder of Zyod, explains the functionality of their system: “We provide day-to-day instructions that were traditionally communicated by factory owners through inefficient means like paper, pen, or WhatsApp. Now, everything from what to produce, how, and when is managed through Zyod, making factories effective executing arms.”

Zyod’s platform is not just about managing factory operations; it also incorporates a daily production reporting system, providing factories with actionable plans to tackle everyday manufacturing challenges. This shift has allowed the startup to serve an impressive roster of clients, including big names like Reliance Industries, Aditya Birla, Japan’s Urban Research, Anthropologie, U.K.’s NEXT, Boohoo, and VAN-DOS of Spain.

The startup’s approach initially catered to Direct-to-Consumer (D2C) brands, aiding them in achieving faster market launch times with low minimum order quantities. However, as of the last quarter, Zyod began onboarding enterprise customers, significantly expanding its business scope and client base.

In addition to its software solutions, Zyod launched a mobile application for both iOS and Android in January. This app targets long-tail customers who wish to manage their style selections on the move and aids enterprise clients in tracking their orders in real-time.

The Series A funding round, led by RTP Global and supported by existing investors such as Lightspeed and Alteria Capital, as well as new participants like Stride Ventures, Stride One, and Trifecta Capital, marks a significant milestone for Zyod. The capital injection will facilitate the startup’s growth in the Southern Hemisphere and allow it to penetrate new markets in Brazil, Australia, Africa, and Scandinavia.

Planned Enhancements and Innovations:

  • Style Predictions: Leveraging data to predict popular clothing styles.
  • Automation: Enhancing the platform to automate the input of designs and streamline pattern creation.
  • Integration with Stitching Machines: Reducing human error by integrating software with traditional stitching equipment.

Financial Overview:

  • Series A Funding: $18 million
  • Seed Funding (April 2023): $3.5 million
  • Revenue: Multi-million dollars in annualized revenue
  • Valuation: Increased “multi-fold” since last funding round
Funding RoundsSeed ($3.5M, April 2023), Series A ($18M)
RevenueMulti-million dollars (annualized)
Client Base550+ in 18+ countries, including major brands
Capacity UtilizationHelping factories reach beyond 33%
Styles CatalogExpanded to 10,000 styles/month from 10-20

In conclusion, Zyod is setting a new standard in fashion manufacturing with its tech-driven solutions. By enhancing operational efficiencies and expanding its global footprint, Zyod is poised to make a significant impact on the fashion industry, ensuring that factories around the world can meet the ever-evolving demands of fashion consumers efficiently and effectively.

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Featured Image courtesy of DALL-E by ChatGPT

Yasmeeta Oon

Just a girl trying to break into the world of journalism, constantly on the hunt for the next big story to share.

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