B2B manufacturing and supply chain startup Groyyo raises $40 million from Tiger Global, Alpha Wave

Business-to-business manufacturing and supply chain enablement startup Groyyo has raised $40 million in a combination of equity and debt from Tiger Global and its existing investors including Alpha Wave Global.

The Mumbai-based company said in a statement on June 15 that it raised equity as a part of its Series A funding round, which saw participation from Groyyo's existing investors Sparrow Capital, and angel investors including Bahram Vakil, founder and senior partner at AZB & Partners, and Vineet Gautam, chief executive at Bestseller India. Stride Ventures, along with debt Blacksoil Capsave Finance, participated it its debt round, the company said.

Groyyo said that it will use the funds to scale its team across manufacturing clusters in India and Bangladesh and key demand belts in the US and the European Union. The company will also invest aggressively on product and technology development to create a more efficient and sustainable ecosystem, Groyyo said.

Founded in July 2021 by Subin Mitra, Pratik Tiwari and Ridam Upadhyay, Groyyo offers a  cross-border B2B Supply Chain enablement platform for SME (small medium enterprises) manufacturers in the fashion and lifestyle categories across South Asia.

The company lets SME manufacturers access global demand, and source cheaper raw materials further enabling digitization across the ecosystem through its marquee tech products, the company said.

Groyyo claims to have partnered with over 400 manufacturers across 150 product categories. Groyyo said it is clocking a $100 million annualised topline and working with clients across the US, Europe, MiddleEast and North America.

Groyyo is betting on the SME manufacturing industry, which it expects to be worth $120 billion already and sees it growing 5X by 2025.

“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,” said Subin Mitra, co-founder and chief executive officer, Groyyo.

“Our vision at Groyyo is to partner with these 20 Million + SME Manufacturers in their quest to scale their business,” Mitra added.

Groyyo said that the market is extremely fragmented as about 45 percent of production is driven by micro manufacturers, with the majority of players operating at barely 50 percent capacity utilisation with critical operational inefficiencies, and thus the company wants to partner with manufacturers to scale their businesses with 'factory-first' growth strategy. Groyyo said it wants to create a network of manufacturing partners and brands that not only witness improved efficiency but also scale profitability creating a strong supply chain.

Groyyo’s tech platform connects brands, factories and raw material suppliers. Groyyo’s 'Brands' application offers trendy styles, easy RFQ (request for quote) placement, real-time tracking of orders to brands worldwide.

The company's 'Factory' application, meanwhile, acts as an operating system for MSME (micro, small, medium enterprises) factories, and enables them to control the entire factory from a mobile phone. Groyyo also has a 'Fabric' application that enables manufacturers to procure raw materials faster and cheaper.