Zyod is an innovative Indian startup that is revolutionizing the fashion industry with its tech platform. The company has recently secured $18 million in funding to expand its operations and reach more than 40 countries globally.
Based in Gurugram, Zyod collaborates with Indian factories to help them produce fashion wear for global brands. The startup has developed an ERP (enterprise resource planning) software, which it describes as the “brain of manufacturing,” that assists factories in maximizing their capacity by providing them with detailed instructions on what needs to be produced, how it should be made, and when it should be made.
One of the key issues Zyod addresses is the low capacity utilization of small and medium factories in India. According to Ankit Jaipuria, co-founder of Zyod, over 80,000 factories in India have a capacity utilization of less than 33%. Zyod’s ERP platform helps these factories understand the specific requirements of different brands, such as the type of fabric that should be used and the cutting and stitching patterns to optimize efficiency.
Additionally, Zyod has introduced a daily production reporting system to provide factories with a day-to-day action plan. This system overcomes the challenges faced by local factories that often rely on manual processes or communication via platforms like WhatsApp. The startup now acts as a central hub, providing factories with all the instructions needed to streamline their operations effectively.
Zyod was founded in early 2023 by Ankit Jaipuria and Ritesh Khandelwal. Since its inception, the company has expanded its customer base to over 550 customers across 18 countries. While the startup initially focused on serving direct-to-consumer brands with faster launch times and low minimum order quantities, it later began attracting enterprise customers. Major brands like Reliance Industries and Aditya Birla in India, as well as Urban Research from Japan and Boohoo from the UK, have partnered with Zyod.
In January, Zyod launched a mobile app for iOS and Android platforms. The app caters to long-tail customers who want to browse and purchase different styles on the go. It also allows enterprise clients to easily access and track their orders. Zyod plans to add new features to the app, including the ability to approve orders and communicate with teams through live chat windows.
The recent $18 million funding round, led by RTP Global, will enable Zyod to expand its presence in the Southern Hemisphere and enter new markets such as Brazil, Australia, Africa, and Scandinavia. The startup aims to create all-season products consistent with the operations of its factories in India. This expansion will enable Zyod to better serve its customers and establish a strong global footprint.
Zyod’s catalog has already expanded from 10 or 20 styles a month to 10,000 styles a month. The startup leverages data collected from its platform to provide brands with predictions on popular clothing styles, enabling them to make informed decisions. With the new funding, Zyod plans to enhance these predictions and automate the platform further. It aims to enable brands to input the style and image of the design they want to produce, allowing the platform to generate accurate patterns. Zyod also plans to integrate its software with traditional stitching machines to minimize human errors.
The Series A funding round also includes an undisclosed debt component, specifically allocated for working capital requirements. According to Ankit Jaipuria, Zyod’s valuation has grown “multi-fold” since the last funding round, and the company generates “multi-million dollars” of annualized revenue.
Zyod’s success has been recognized by investors such as Lightspeed and Alteria Capital, who participated in the latest funding round. Rahul Taneja, a partner at Lightspeed India, expressed his excitement about the partnership and the potential for Zyod’s rapid global expansion.
In conclusion, Zyod is transforming the fashion industry through its innovative tech platform. By providing factories with detailed instructions and optimizing their operations, Zyod is helping to increase their capacity utilization and improve efficiency. With its recent funding, Zyod is well-positioned to expand its global reach and continue revolutionizing the fashion manufacturing process.
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