B2B fashion startup Zyod raises $18 Mn led by RTP Global

Global B2B platform for apparel sourcing and manufacturing Zyod has raised $18 million in a Series A round led by RTP Global. The funding round, a mix of debt and equity investment, also saw participation from Lightspeed Venture Partners, Alteria Capital, Stride Ventures, Stride One, and Trifecta Capital.

This is the second funding for the Gurugram-based startup within 15 months. In April 2023, it raised $3.5 million in a seed round led by Lightspeed.

The company said it will use the capital for geographical expansion to 40 new countries from 18 countries while it will also go for technological advancements and talent acquisition.

Founded by Ankit Jaipuria and Ritesh Khandelwal, Zyod offers exclusive support to global customers looking to launch and grow their fashion businesses and brands from scratch. The startup claims that it can provide a new range of products within 21 days with as low as 50 pieces minimum order which makes it a lucrative option for brands.

In India, it works with Reliance, Aditya Birla, Rare Rabbit, FirstCry and others. The firm aims to double its customer base and introduce 100,000 unique designs every month catering to a global audience.

In the next few years, Zyod expects 80% of its business to come from overseas markets.

ZYOD competes with Prosus-backed Fashinza which has raised around $150 million to date. As per an ET report, Fashinza was planning to return investors' money as it failed to find traction in the original business plans.

Early-stage venture capital firm RTP Global announced the close of its $1 billion fund in June last year. As per the fund, it will make a third of its investments in India. In 2024, it backed startups like International Battery Company (IBC), Dexif, Varaha, and SydeLabs, among others.