Indian startup Zyod has raised $18 million in a funding round to expand its tech platform for global fashion brands. The Gurugram-based company partners with Indian factories to help them manufacture fashion wear for international brands. Zyod offers an enterprise resource planning (ERP) software that acts as the “brain of manufacturing.” This software informs factories about what needs to be produced, how it should be made, and when it should be made to optimize their capacity utilization.
Many small and medium factories in India currently have a capacity utilization of less than 33%. Zyod’s ERP platform addresses this issue by helping factories understand the components they need to produce clothes for specific brands. It also provides guidance on how to cut and stitch fabric based on brand requirements to maximize efficiency.
Zyod has also developed a daily production reporting system that offers a day-to-day action plan for factories. This overcomes the challenges faced by local factories and their labor, such as managing operations through paper and pen or WhatsApp. The startup acts as the “brain of manufacturing,” providing instructions to factories on how to make products and when to make them.
Founded in 2023, Zyod currently serves over 550 customers in 18 countries. Initially focused on direct-to-consumer (D2C) brands, the startup has recently onboarded enterprise customers, including major brands like Reliance Industries and Aditya Birla in India. It also counts international brands such as Urban Research, Anthropologie, NEXT, Boohoo, and VAN-DOS among its clients.
In January, Zyod launched a mobile app for iOS and Android, catering to long-tail customers who want to purchase different styles on the go. The app also allows enterprise clients to track their orders. Zyod plans to enhance the app by adding new communication methods, such as live chat windows.
The $18 million investment in Zyod’s Series A round, led by RTP Global, will help the startup expand its presence in the Southern Hemisphere and enter markets like Brazil, Australia, Africa, and Scandinavia. The funding will also be used to improve the startup’s style predictions based on collected data and automate the platform to reduce human errors.
Zyod has seen significant growth since its last funding round, with a valuation that has multiplied and multi-million dollars of annualized revenue. Investors are optimistic about the startup’s future, with Lightspeed India expressing excitement about Zyod’s rapid global expansion. By leveraging technology to optimize the production process, Zyod aims to revolutionize the fashion industry and provide value to its customers worldwide.
