Following the investment, the Bengaluru-based startup will channel the capital into expanding its artificial intelligence capabilities, strengthening research and development (R&D), and building strategic partnerships with textile mills and global fashion brands. Moreover, STCH operates under the contract development and manufacturing organisation (CDMO) model, positioning itself as a key enabler in the global textile supply chain.

Founded in 2025 by Narahari Payala and Aseem Chitkara, STCH focuses on building an AI-powered fabric R&D and manufacturing platform. Specifically, the platform enables global fashion brands to design and deliver trend-aligned, high-performance, and sustainable fabrics at scale.

Furthermore, the startup leverages artificial intelligence to analyze global fashion trends, develop eco-friendly fabrics, and distribute them through its controlled manufacturing network across India and Asia. In addition, its AI platform facilitates the selection of sustainable fibres while optimizing supply chain efficiency, thereby enhancing overall production outcomes.

At present, STCH has built a strong market presence, with an order book exceeding $15 million from leading brands across the United Kingdom, Europe, and the United States. This traction highlights the increasing demand for AI-driven textile solutions and sustainable fabric innovation in global markets.

Importantly, founders Narahari Payala and Aseem Chitkara previously worked with Zetwerk, where they gained deep expertise in the textile and manufacturing ecosystem. Their combined experience continues to drive STCH’s strategic growth and innovation roadmap.

According to Narahari Payala, the fashion industry currently directs much of its AI innovation toward the front end, but it finds the real opportunity deeper in the supply chain, where Asian markets dominate manufacturing.

“Fabric, in particular, is the most critical yet least optimised layer. With improving trade dynamics, including free trade agreements with the UK and Europe as well as easing tariffs from the USA, we believe this is a defining moment to build a globally leading, AI-native textile innovation powerhouse from India,” said Payala.

Meanwhile, Omnivore Managing Partner Mark Kahn emphasized the founders’ expertise and India’s potential in sustainable textiles.

“Narahari and Aseem bring rare depth as they understand both the materials science and the supply chain realities of getting sustainable textiles to market at scale. India has the raw materials, the mills, and now—with STCH—the AI-native platform is set to become the world’s leading source of sustainable textile innovation.”

STCH’s $7 million funding round underscores the growing convergence of artificial intelligence, textile innovation, and sustainable manufacturing. As global demand for eco-friendly fabrics rises, the startup stands well-positioned to transform the textile supply chain through AI-driven insights, scalable production, and strategic global partnerships. Consequently, STCH could emerge as a key player in shaping the future of sustainable fashion and textile technology from India to the world.

As part of this round, the company’s board approved the issuance of 54,915 Series B2 compulsorily convertible preference shares (CCPS) at a price of Rs 6,465 per share, enabling Neeman’s to raise Rs 35.50 crore. In addition, the company allotted 5,414 partly paid-up equity shares at the same price to co-founders Taranjeet Singh Chhabra and Amar Preet Singh, with both founders making equal investments.

Moreover, the Series B2 tranche attracted participation from several investors. Snam Solutions, backed by Muralidhar Dhuddu, led the round with an investment of Rs 16 crore. This was followed by Grand Anicut, which contributed Rs 7 crore, and Sharrp Ventures, which invested Rs 5 crore. Other institutional and individual investors collectively infused an additional Rs 7.5 crore.

As a result, the latest fundraising will value Neeman’s at approximately Rs 439 crore ($49 million) on a post-money basis. The company plans to deploy the newly raised capital toward strengthening its working capital position and supporting ongoing operational requirements.

Founded in 2017 and headquartered in Hyderabad, Neeman’s has built a reputation for eco-conscious footwear made using sustainable materials. The brand primarily operates on a direct-to-consumer model and, over time, has established a strong digital presence while steadily expanding its offline retail footprint.

To date, Neeman’s has raised more than $17 million in funding. Following the latest round, Grand Anicut now holds an 8.63 percent stake in the company, while Enam Investments, Snam Solutions, and Sharrp Ventures own 4.76 percent, 3.64 percent, and 3.51 percent stakes, respectively.

Meanwhile, for FY24, Neeman’s reported an 11.4 percent year-on-year increase in revenue, reaching Rs 76.94 crore compared to Rs 69.05 crore in FY23. Additionally, the company reduced its net loss by 14 percent to Rs 29.23 crore from Rs 33.98 crore in the previous year. However, Neeman’s has not yet disclosed its financial performance for FY25.