The $40 million round saw participation from existing investors Sparrow Capital, Stride Ventures ad other angel investors like Bahram Vakil, founder & senior partner at AZB & Partners and Vineet Gautam, chief executive officer of Bestseller India with debt partners like Blacksoil and Capsave Finance also participating.
The Mumbai-based startup plans to utilise the funds raised to scale the team across manufacturing clusters in India and Bangladesh and key demand belts in the United States and European Union.
The startup is also planning to invest behind product and technology development to create a more efficient and sustainable ecosystem, it said in a prepared statement on Wednesday.
“We will be ramping up our buyer and product app and will be expanding our team in supply hubs in South Asia like Ludhiana, Biwandi, Tirupur in India and Dhaka in Bangladesh,” cofounder Subin Mitra said.
Founded in July 2021 by Mitra, Pratik Tiwari & Ridam Upadhyay, Groyyo is a cross-border B2B Supply Chain enablement company that offers services to SME manufacturers in the fashion & lifestyle categories across South Asia.
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The company has also entered the US and the UK markets over the last three months.
“We have a few big clients in India in apparel and manufacturing segments and we will also focus on countries like France, Germany and more,” Mitra added.
The company helps its clients access global demand and source cheaper raw materials further enabling digitization across the ecosystem through its marquee tech products.
Groyyo raised $4.6 million in a seed funding round in January of 2022 led by Alpha Wave Incubation, an incubator managed by Falcon Edge Capital. It was planning to use the funds to build its teams across key manufacturing clusters in South Asia and for expansion into the US and the Middle East.
“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, “We are excited to support Groyyo’s vision to build an efficient, tech-enabled supply chain and are impressed with its traction so far.”
The startup is clocking an annualised revenue of $100 million as of June 2022 and is currently working with more than 100 clients in the fashion and lifestyle segment and serves around 400 manufacturers in its client base.
Around 30-40% of Groyyo’s revenue is from the US market and around 30% from India and the rest from countries like the EU and Middle East and North Africa (MENA).
“We are aiming to multiply our topline by two-fold in the next year… in terms of clients we are aiming to double the number, too,” Mitra added.