Business-to-business manufacturing and automation company Groyyo Pvt Ltd has raised $4.6 million as a part of its seed funding round led by Alpha Wave Incubation, which is backed by DisruptAD, ADQ’s venture platform, and managed by Falcon Edge Capital.
Angel investors Deepak Jain, partner and manufacturing lead at Bain & Co, Arpan Seth, partner and Global private equity (PE) lead at Bain & Co, OYO Group’s Global Chief Strategy Officer Maninder Gulati and Bombay Chamber of Commerce Chairperson Anjali Bansal also participated in the funding round along with early-stage investor Sparrow Capital and venture-debt fund Stride Ventures, the company said in a statement.
Groyyo plans to use the funds for building its teams across manufacturing clusters in South Asia and said will expand its presence in the US and Middle-East. The company said it will also deploy the funds to upgrade its manufacturing partners’ technology.
Founded in July last year by Subin Mitra, Pratik Tiwari and Ridam Upadhya, Groyyo aims to transform the manufacturing sector with the use of artificial intelligence (AI), technology, innovation and standardisation. The company said its production software digitises its partner factories by enabling production tracking and inputs to optimise efficiency to give them an opportunity to sell their products within the country and internationally.
Groyyo is working with mirco, small and medium enterprises (MSMEs) across South Asia and claims to have onboarded 200 manufacturers across categories till date. The company provides technology to these MSMEs which enables them to manufacture ‘global-standard’ products, Groyyo said. Its technology helps companies to witness a 15% growth in revenue and 20% growth in profitability, the statement added.
“With the rise and dominance of D2C (direct-to-consumer) brands, there is a pressing need for transparent, compliant, quality manufacturers who can cater to low minimum order sizes, fast turnaround times, and price competitiveness. Our mission at Groyyo is to bring technology to the millions of micro-manufacturers across South Asia and change the face of sourcing, globally,” said Mitra, Co-founder at Groyyo.
Groyyo said it is betting on the MSME industry of South Asia, which it said has a network of more than 20 million businesses. The company estimates the industry to be worth $120 billion and sees it growth five times by 2025.
Zetwerk, another B2B manufacturing company, had last week raised $210 million with its valuation soaring to $2.7 billion.