B2B Fashion Startup Zyod Raises $18 Million Led by RTP Global

Gurugram-based B2B platform Zyod, which specializes in apparel sourcing and manufacturing, has secured $18 million in a Series A funding round led by RTP Global. The funding, a mix of debt and equity investment, also saw participation from existing investors Lightspeed Venture Partners, Alteria Capital, Stride Ventures, Stride One, and Trifecta Capital. This marks the second funding round for Zyod within 15 months, following its $3.5 million seed round led by Lightspeed in April 2023.

Zyod offers exclusive support to global customers aiming to launch and grow their fashion businesses and brands from scratch. The startup’s unique value proposition lies in its ability to provide a new range of products within 21 days, with a minimum order requirement as low as 50 pieces. This flexibility makes Zyod an attractive option for brands seeking efficient and agile manufacturing solutions.

Fashion manufacturing process

Geographical Expansion and Technological Advancements

The newly raised capital will be utilized for two key purposes:

Geographical Expansion: Zyod plans to expand its presence from 18 countries to 40 new countries, catering to a global audience.

Technological Advancements: The startup aims to enhance its tech stack, streamlining processes and improving efficiency across the entire design-to-delivery spectrum.

Zyod’s Approach to Manufacturing

Zyod acts as the “brain of manufacturing” for factories. Through its ERP (enterprise resource planning) software, it guides factories on what needs to be produced, how to make it, and when to produce it. This approach helps factories fully utilize their capacity, especially considering that over 80,000 small and medium factories in India operate at a capacity utilization of less than 33%.

The startup also provides a daily production reporting system, replacing traditional paper-and-pen or WhatsApp-based communication. By offering day-to-day instructions, Zyod ensures efficient execution while maintaining quality standards.

Customer Base and Global Ambitions

Zyod currently serves more than 550 customers across 18 countries. Notable clients include Reliance Industries, Aditya Birla, Urban Research (Japan), Anthropologie (Pennsylvania), NEXT (U.K.), Boohoo, and VAN-DOS (Spain). The startup aims to double its customer base and introduce 100,000 unique designs every month, further solidifying its position in the global fashion industry.

In the coming years, Zyod expects 80% of its business to come from overseas markets, emphasizing its commitment to international growth.

With this latest funding, Zyod is well-positioned to revolutionize apparel manufacturing, combining technology, agility, and creativity to meet the evolving demands of the fashion world.


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