Business-to-business (B2B) manufacturing and automation startup Groyyo Pvt Ltd has raised a $40 million (around Rs 308 crore) combination of equity and debt in a Series A funding round led by Tiger Global.
The round also saw participation from existing investors including Alpha Wave, Sparrow Fund and Stride Opportunities, with other investors like Bahram Vakil (Founder and Senior Partner at AZB & Partners) and Vineet Gautam (CEO - Bestseller India) with debt investors Blacksoil and Capsave Finance also chipping in.
Tiger Global led the round with Rs 152.9 crore, while Alpha Wave invested Rs 49.7 crore. The Groyyo board has passed a special resolution to allot 3,916 Series A CCPS at an issue price of Rs 5,36,915 per share, the regulatory disclosure said.
The Mumbai-based company said the fresh funds will be used to scale the team across manufacturing clusters in India and Bangladesh and key demand belts in the United States and European Union. It is also investing in product and technology development.
“The SME Manufacturing ecosystem in the fashion and lifestyle segments across South Asia is extremely disaggregated yet at a tipping point. Having spent a considerable amount of time with manufacturers across South Asia, I have seen first-hand their hunger and zeal to grow and take their business global. Our vision at Groyyo is to partner with these 20 million+ SME Manufacturers in their quest to scale their business,” said Subin Mitra, Co-founder, CEO, Groyyo.
Groyyo raised $4.6 million in its seed round earlier in January. The latest fund infusion takes the total funding raised by the firm at $44.6 million to date.
“As supply chains for fashion and lifestyle goods move to South Asia, the sourcing market is poised for transformation,” said Griffin Schroeder, Partner, Tiger Global.
Founded in July last year by Mitra, Pratik Tiwari, and Ridam Upadhya, Groyyo aims to transform the manufacturing sector with the use of artificial intelligence (AI), technology, innovation, and standardization. Groyyo is working with micro, small and medium enterprises (MSMEs) across South Asia.
Mitra and Tiwari had worked together at Singapore-based fashion-focused tech platform Zilingo while Upadhyay worked with Flipkart and Udaan during their early years.
Groyyo also assists MSMEs in finding demand and consumers, as well as filling up their underutilized capacity.
The company has onboarded over 360 factories manufacturing products across 150 categories for 110 brands. It has a presence in Gurugram, Mumbai, Dhaka, and Abu Dhabi, as per its website.
Groyyo claims it is clocking $100 million+ annualised topline working with clients across the US, EU, MENA and North America.
In January, Groyyo said it is looking to bet 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 its growth five times by 2025.
(The fundraise amount has been updated from $27 mn to $40 mn to include funding from other investors)