B2B manufacturing and supply chain enablement startup Groyyo is reportedly in advanced discussions to secure a $40 Mn Series B funding round.
The investment will primarily consist of equity, with participation from marquee investor Tiger Global alongside other notable backers. Sources close to the matter have indicated that the round could propel Groyyo’s valuation to an impressive $200 Mn (approximately INR 1,700 Cr), reflecting a significant 25% increase from its previous valuation of $160 Mn (around INR 1,200 Cr).
The funding round is expected to include contributions from Groyyo’s existing investors such as Alpha Wave and Sparrow Capital. Additionally, the startup is engaging with global sovereign and hedge funds to expand the pool of investors, with further participation anticipated. A small portion of the funding is expected to come from debt financing, according to insiders.
Founded in July 2021 by Subin Mitra and Pratik Tiwari, Groyyo offers a comprehensive platform aimed at empowering small and medium enterprises (SMEs) in the apparel and textile sectors. By facilitating improved capacity utilization and digitizing processes such as inventory management, Groyyo has carved out a niche in helping SMEs meet global standards and demand. The platform has proven particularly valuable for SMEs in the fashion and lifestyle industries, where operational efficiency is key to scaling.
While Groyyo initially catered to Indian brands, it has pivoted to focus on international markets. Today, the startup counts global giants like Zara, Mango, and John Lewis among its key clients, with approximately 90% of its revenue derived from these international collaborations.
For the fiscal year 2024, Groyyo reported an operating revenue of INR 425 Cr (around $50 Mn) and is projecting an increase to INR 480 Cr (about $60 Mn) in FY25. The startup’s journey to profitability has been noteworthy, achieving EBITDA positive status by the end of 2024.
Insiders attribute Groyyo’s success to a combination of strategic business decisions and favorable external factors. The ongoing geopolitical challenges in Bangladesh, coupled with India’s proactive policies under the ‘Make In India’ initiative, have bolstered the company’s positioning as a reliable partner for international brands.
Despite the buzz surrounding the funding round, Groyyo has refrained from commenting on the developments. Industry experts, however, see this potential funding as a validation of Groyyo’s robust business model and its role in revolutionizing supply chain enablement for SMEs.
As the discussions progress, all eyes are on how this fresh capital infusion will accelerate Groyyo’s mission of bridging the gap between SMEs and global markets. With a sharp focus on digitization, operational excellence, and international expansion, Groyyo is poised to cement its position as a leader in the B2B supply chain space