Groyyo, an AI-powered manufacturing and supply chain automation startup based in India, has raised $9.3 million in the first close of its $20 million funding round. This investment will fuel the company’s expansion into new markets and deepen its supplier network while enhancing the AI technology behind its apparel sourcing software.
- Raised $9.3M in first close of $20M round led by Cornerstone Ventures
- Platform manages design-to-delivery apparel sourcing with AI automation
- Plans to expand geographically and enhance AI features for manufacturers
What happened
Groyyo announced a $9.3 million investment in the initial closing of its planned $20 million funding round. The round is led by Cornerstone Ventures with participation from existing investors including Sparrow Capital, Stride Ventures, and Tiger Global. The funding brings Groyyo’s total capital raised to $54 million.
Founded in 2021, the Gurugram-headquartered startup delivers AI-powered software that digitizes apparel manufacturing processes for brands and factories. Its suite covers key functions like product design, costing, production planning, quality checks, factory management, and logistics.
Why it matters
Fashion supply chains are large and highly fragmented with limited technology penetration, making Groyyo’s AI-first approach a strategic point of differentiation. The platform compresses timelines from design concept to delivery while improving visibility and operational efficiency across manufacturing networks.
With a revenue run rate of approximately Rs 500 crore in FY26 and active operations across India, North America, Europe, the UK, and the Middle East, Groyyo supports over 470 manufacturers and more than 45 international brands. The funding enables strengthening its supplier ecosystem and scaling AI innovations that power trend detection, production automation, and end-to-end product fulfillment.
What to watch next
Groyyo’s next growth phase will focus on scaling its existing factory network and expanding into additional geographies. Key areas will include enhancing the AI infrastructure that drives its platform capabilities and maintaining trust with partners amid rapid expansion.
Market observers will track how Groyyo leverages this capital to deepen penetration in international markets and outpace competitors by continuously improving AI tools that streamline sourcing and manufacturing workflows, a traditionally fragmented industry that has seen slow technology adoption.