[Funding alert] Groyyo raises $40M in Series A led by Tiger Global
, a business-to-business manufacturing and a supply chain enablement startup, has raised $40 million in a combination of equity and debt in its Series A round of funding. The round was led by Tiger Global, with participation from its early investor Alpha Wave Global. The startup had previously raised a seed round of $4.6 million in January 2022.
Blacksoil Capsave Finance, Sparrow Capital, Stride Ventures, and angel investors like Bahram Vakil of AZB & Partners and Vineet Gautam of Bestseller India also participated in the round.
Groyyo plans to use the funds to scale the team across manufacturing clusters in India and Bangladesh, and key demand belts in the United States and European Union. It will also invest in product and technology development, it said in a statement.
Founded in July 2021 by Subin Mitra, Pratik Tiwari, and Ridam Upadhyay, the Mumbai-based startup connects manufacturers with fashion and lifestyle brands and offers automation and technology to boost efficiency. It also helps manufacturers access global demand across South Asia and source cheaper raw materials.
"The small and medium enterprises (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.
The startup works with more than 400 manufacturers across over 150 product categories. It is present across North America, Europe, the Middle East, and North Africa region.
In the 11 months of being operational, Grotto said it is clocking over $100 million in annual revenue. It aims to leverage the under-utilised SME industry, which it expects to be a $120 billion opportunity poised to grow 5X by 2025.
“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,” he added.