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Zyod Secures $18 Million in Series A Funding to Fuel Global Expansion

Preeti Bali / 10:08 am / June 26, 2024

Zyod, a prominent global platform facilitating apparel sourcing and manufacturing, has successfully secured $18 million in its Series A funding round. This round, encompassing both debt and equity investments, was spearheaded by venture capital firm RTP Global. Zyod’s established investors, including Lightspeed Venture Partners, Alteria Capital, also participated in the round, alongside new investors Stride Ventures, Stride One, and Trifecta Capital.

Building on Momentum with Second Funding Round

This funding milestone marks Zyod’s second significant investment within the past 15 months. The Gurugram-based company previously secured $3.5 million in a seed round led by Lightspeed in April 2023.

Strategic Investment Fuels Global Expansion and Innovation

Zyod plans to strategically utilize the newly acquired capital to fuel its ambitious growth plans. A significant portion of the funds will be directed towards geographical expansion, with the company aiming to establish a presence in 40 new countries, extending its reach beyond its current focus on 18 markets. Additionally, Zyod will invest in technological advancements to further enhance its platform’s capabilities. Recognizing the importance of human capital, the company also intends to allocate resources towards talent acquisition, bolstering its team with skilled professionals.

Empowering Fashion Brands with Speed and Efficiency

Founded by Ankit Jaipuria and Ritesh Khandelwal, Zyod is dedicated to providing exceptional support to global customers seeking to launch and nurture their fashion businesses and brands. The company prides itself on offering comprehensive services, enabling clients to develop new product lines within a remarkable timeframe of just 21 days. Furthermore, Zyod caters to businesses of all sizes by maintaining a low minimum order quantity of just 50 pieces, making it an attractive option for emerging brands.

Building a Strong Domestic and International Presence

Within the Indian market, Zyod boasts a well-established clientele, collaborating with prominent names like Reliance, Aditya Birla, Rare Rabbit, and FirstCry. Leveraging this success, the company has set ambitious goals for the future. Zyod aims to double its customer base and significantly expand its design library, introducing a staggering 100,000 unique designs every month to cater to a global audience. With a clear vision for the future, Zyod anticipates that 80% of its business will originate from overseas markets within the next few years.

Competitive Landscape and Investor Confidence

Zyod operates within a competitive environment, facing established players like Prosus-backed Fashinza. Despite Fashinza’s significant funding of approximately $150 million to date, recent reports suggest the company may be facing challenges in achieving its initial business objectives.

The successful closure of Zyod’s Series A funding round highlights the confidence that leading investment firms like RTP Global have in the company’s potential. Notably, RTP Global established a $1 billion fund in June 2023, with plans to dedicate a third of its investments to the Indian market. In 2024 alone, RTP Global has demonstrated its commitment to fostering innovation by backing promising startups like International Battery Company (IBC), Dexif, Varaha, and SydeLabs.

 

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