Indian Startup Zyod Raises $18M to Revolutionize Global Fashion Manufacturing

Indian Startup Zyod Raises $18M to Revolutionize Global Fashion Manufacturing
Image credit: Zyod X (formally Twitter) handle 

Zyod, an Indian startup that provides a tech platform to assist global fashion brands from design to delivery, has secured $18 million in a new funding round to expand its global presence to over 40 countries.

The Gurugram-based company partners with Indian factories to produce fashion wear for international brands, offering ERP software, known as the “brain of manufacturing,” to guide factories on production specifics, maximizing their capacity.

With over 80,000 small and medium factories in India utilizing less than 33% of their capacity, Zyod’s ERP platform helps these factories determine the necessary components and optimal production patterns to meet brand requirements efficiently.

The startup has also developed a daily production reporting system to provide factories with day-to-day operational plans, replacing traditional management methods.

Founded in early 2023 by Ankit Jaipuria and Ritesh Khandelwal, Zyod serves over 550 customers in 18 countries, having added about 400 customers in the past two years. Initially focused on D2C brands, Zyod now also caters to enterprise customers, including major brands like Reliance Industries and Japan’s Urban Research.

In January, Zyod launched a mobile app for iOS and Android, targeting long-tail customers and enterprise clients for order management. Future updates will include new communication features.

The $18 million Series A round, led by RTP Global with participation from existing and new investors, will help Zyod expand in the Southern Hemisphere and enter under-tapped markets like Africa and Scandinavia. Zyod aims to offer consistent, all-season products for factories in India.

With the new funding, Zyod plans to enhance its predictive capabilities, automate its platform, and integrate its software with traditional stitching machines to reduce errors.

The Series A round also includes undisclosed debt for working capital. Zyod’s valuation has significantly increased since its $3.5 million seed round in April 2023, and the startup generates multi-million dollar annual revenue. Investors are excited about Zyod's rapid global expansion and growth potential.