The latest funding will help the company build out its teams across key manufacturing clusters in South Asia along with expanding its presence across the United States and the Middle-east establishing a global footprint.
Mumbai based start-up Groyyo, a B2B Manufacturing and Automation company today announced it has raised $4.6 million in a seed round of funding led by Alpha Wave Incubation (AWI), which is backed by DisruptAD, ADQ’s venture platform, and managed by Falcon Edge Capital.
This round also saw participation by notable marquee angels such as Deepak Jain (Partner & Manufacturing Lead, Bain & Co), Arpan Seth (Partner & Global PE Lead – Bain & Co), OYO Group’s Global Chief Strategy Officer Maninder Gulati and Bombay Chamber of Commerce Chairperson Anjali Bansal. Early investors Sparrow Capital and notable venture-debt fund Stride Ventures also participated in this round.
South Asia is home to an untapped network of 20 million+ small & medium sized manufacturing businesses which are struggling to sustain themselves. This $120 billion industry is poised to grow 5x by 2025. However, in this extremely fragmented market where about 45% production is driven by micro manufacturers, the majority of small players are operating at barely 50% capacity utilization with critical operational inefficiencies. Rampant plaguing factors such as lack of quality demand, completely offline floor operations coupled with a lack of technology and challenges in raw material procurement lead to these businesses operating at suboptimal levels.
Groyyo is dedicated to driving growth creating opportunities for these smaller players. Through its factory-first monetization model; the company is focused on sustainable growth and driving efficiency for its factory partners; This means that a “Groyyo Standard Factory” will see revenue grow by ~15% & profitability increase by ~20%.
Innovation and a passion for change is at the core of Groyyo’s heart. The real-time production software digitizes partner factories by enabling production tracking and intelligent inputs to optimise efficiency and gives them a global outreach to international and national buyers.
Groyyo, has been working with MSMEs across South Asia. The company comes with a promise to make manufacturing partners smart, digital, efficient, and compliant to international standards enabling them to cater to global demand. Its competencies lie in creating an efficient, lean & transparent supply chain with innovation and technology driving its core.
Founded in July 2021 by Subin Mitra, Pratik Tiwari & Ridam Upadhyay, Groyyo has already empowered over 200 manufacturers across categories by maximizing their potential within just 6 months of being operational. Prior to this the founders held key leadership positions at B2B unicorns Zilingo and Udaan, respectively.
Subin Mitra, Co-Founder, Groyyo, said, “The future of global sourcing is going to be dominated by small manufacturers. With the rise & dominance of D2C brands, there is a pressing need for transparent, compliant, quality manufacturers who can cater to low minimum order sizes, fast turnaround times, and price competitiveness. Our mission at Groyyo is to bring technology to the millions of micro-manufacturers across South Asia and change the face of sourcing, globally.
Anirudh Singh, Managing Director, Alpha Wave Incubation, added, “We believe product sourcing is a global challenge with massive opportunities across both demand and supply. We really liked the supply first approach adopted by Groyyo, which helps them cater to a multitude of categories and products to serve buyers across the globe. Additionally, we also think Groyyo’s solution will give a fillip to South Asia’s rising small manufacturer segment, which is hungry to work with large scale clients.”
The latest funding will help the company build out its teams across key manufacturing clusters in South Asia along with expanding its presence across the United States and the Middle-east establishing a global footprint. Additionally, it will aggressively invest in the technological & physical upgradation of its manufacturing partners.
Source: Business World