Sunday, July 14, 2024
HomeStart UpB2B fashion platform Zyod raises $18M in funding 

B2B fashion platform Zyod raises $18M in funding 

B2B fashion marketplace Zyod secures $18 million in funding boost. This investment round combines equity funding led by venture firm RTP Global with debt financing from Stride Ventures, Trifecta Capital, and Alteria Capital. Notably, the majority of the funding comes from equity investors, demonstrating strong confidence in Zyod’s future. Existing investor Lightspeed Venture Partners also participated in the round, further solidifying their support for the company.

Zyod has plans to use the raised funds to significantly grow its customer base. By the end of the fiscal year, they want to be operating in over 40 countries, more than double their current reach of 18. This expansion will include both entirely new markets and deeper penetration into existing ones, with a focus on areas like the US, UK, Middle East Asia, and Japan. Jaipuria also mentioned using the funds to broaden the product categories they offer and improve their technology. These tech advancements will allow them to better forecast supply chain issues, production shortfalls, and even design trends.

“Zyod leverages tech to refine every facet of the production process, right from a modular design approach to optimising operations at the factory level. We are excited to support Zyod as they expand their transformative platform internationally,” Nishit Garg, partner at RTP Global’s Asia investment team said. 

A relatively new player, Zyod, began operations in January of last year. The company, co-founded by Jaipuria and Ritesh Khandelwal, has grown quickly to a team of around 100 employees. These employees come from various backgrounds including design, engineering, supply chain management, and sales. To fuel its international expansion plans, Zyod is actively seeking to add to its sales teams in overseas markets.

Zyod collaborates with fashion brands from sketch to shelf. This teamwork starts with Zyod and the brand’s design teams brainstorming together to create fresh clothing concepts.

“One of the biggest challenges in fast fashion is inventory wastage as you have new releases every few months… we also help manage the supply side so brands can purchase smaller batches of inventory more efficiently,” Jaipuria said.  

The startup is bringing in a healthy annual revenue in the double-digit millions, and they aim to triple that by fiscal year 2025. Zyod projects that most of its business, around 80%, will come from international markets in the coming years. The company expects to focus on large enterprise clients for the first three years, but they eventually see more business coming from smaller clients.

Zyod supplies products to a variety of apparel brands, including Landmark Group, NEXT, Rare Rabbit, FirstCry and Allen Cooper, among others. In April last year, the firm had raised $3.5 million in a funding round led by Lightspeed Venture. 

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BRL Editor
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