Zyod: Revolutionizing Global Fashion Manufacturing
Zyod, an innovative startup from India, is transforming the global fashion manufacturing landscape. The company provides a unique tech platform that helps fashion brands manage their design-to-delivery process more efficiently. Having recently raised $18 million in a new funding round, Zyod aims to expand its operations to over 40 countries around the world.
How Zyod Works
Based in Gurugram, India, Zyod collaborates with local factories to manufacture fashion wear for global brands. The core of Zyod's solution is its ERP (enterprise resource planning) software, which is referred to as the “brain of manufacturing”. This software tells factories:
- What to produce
- How it should be made
- When it should be done
Tackling Underutilization
More than 80,000 small and medium factories in India run at less than 33% capacity. Zyod's platform helps these factories optimize their processes by identifying necessary components, such as specific fabrics, and detailing how these materials should be cut and stitched to maximize efficiency.
Daily Production Reporting
Zyod has developed a daily production reporting system, which provides day-to-day action plans for factories. This system replaces traditional methods where factory owners would manage operations manually or through informal channels like WhatsApp. As Ankit Jaipuria, Zyod’s co-founder, explained:
“We give day-to-day instructions covering how, when, and what needs to be made. This way, Zyod serves as the brain while factories act as executing arms.”
Company Growth
Founded in early 2023 by Ankit Jaipuria and Ritesh Khandelwal, Zyod has quickly expanded its customer base:
- Current Reach: Over 550 customers in more than 18 countries
- Recent Growth: Added about 400 customers in the past two years
Client Portfolio
Initially, Zyod supported D2C (Direct-to-Consumer) brands with rapid launch schedules and low minimum order quantities. Recently, they’ve started working with larger enterprises including major brands like:
- Reliance Industries
- Aditya Birla
- Japan’s Urban Research
- Anthropologie of Pennsylvania
- U.K.’s NEXT and Boohoo
- VAN-DOS of Spain
Expanding Capabilities
In January, Zyod launched a mobile app available on both iOS and Android platforms. The app is designed for:
- Long-tail Customers: Those who want to make purchases on the go
- Enterprise Clients: To track and manage their orders
Future updates to the app will include new features like live chat windows for order approvals and team communications.
Funding and Future Plans
Recent Funding
Zyod's recent $18 million Series A funding round was led by RTP Global, with contributions from:
- Lightspeed
- Alteria Capital
- Stride Ventures
- Stride One
- Trifecta Capital
Utilization of Funds
The new funds will be used to:
- Expand into the Southern Hemisphere, targeting markets like Brazil and Australia
- Penetrate lesser-tapped regions such as Africa and Scandinavia
- Maintain a consistent supply of all-season products for Indian factories
Product and Technological Enhancements
Zyod has expanded its product catalog significantly, now offering 10,000 styles per month. The startup also provides data-driven predictions for fashion trends. With the new funding, Zyod plans to:
- Enhance predictive algorithms
- Automate the design-to-production process by allowing brands to input style and image for pattern generation
- Integrate their software with traditional stitching machines to minimize human errors
Debt Component
The Series A funding round includes an undisclosed amount of debt, earmarked for working capital needs.
Investor Confidence
Investors are optimistic about Zyod’s innovative approach. Nishit Garg from RTP Global commented:
“Zyod leverages tech to refine every facet of the production process, from a modular design approach to optimizing factory operations.”
Continued Growth
The new funding follows a $3.5 million seed round raised in April 2023. Zyod’s valuation has grown significantly since the last round, indicating strong business performance. The company also generates multi-million dollars in annualized revenue, showcasing its commercial viability.
In conclusion, Zyod is swiftly becoming a game-changer in the fashion manufacturing industry. With its advanced tech platform, strong growth trajectory, and substantial investor backing, the startup is well-positioned for continued success and global expansion.
