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In the fast-paced world of fashion, brands face immense pressure to innovate quickly to meet the rapidly rising consumer demand led by the growth of fast fashion and an increase in disposable incomes.

However, traditional fashion manufacturing—fuelling the growth of the Indian textile and apparel market which is projected to triple to $592.7 billion by 2032 from $197.2 billion in 2023, according to the IMARC Group—is bogged down by several inefficiencies.

These include poor inventory management, inefficient labour allocation, outdated machinery, poor maintenance, high defect rates, inefficient layout designs, and slow reaction times.

The industry also struggles with the problem of overproduction, which contributes to 7,800 kilotonnes of textile waste generated annually, according to a Fashion For Good report.

Recognising the need to upgrade textile manufacturing to meet modern consumer demands, IIT Delhi alum Ankit Jaipuria and textile businessman Ritesh Khandelwal founded ZYOD in 2023.

“Fast fashion requires a dynamic approach to production, something the traditional supply chain is ill-equipped to handle. ZYOD was founded to bring that much-needed agility to fashion manufacturing,” Co-founder Jaipuria tells YourStory.

The Gurugram-based startup connects brands with Indian factories, helping them design, produce, and deliver high-quality fashion faster and more efficiently. It aims to transform global fashion supply chains by leveraging data-driven tools.

“We developed a digital platform designed to revolutionise apparel manufacturing by enhancing industry agility, improving brand efficiency, and reducing inventory losses,” he adds.

The startup’s platform integrates the entire production process—from design to delivery—using advanced ERP software. It enables brands to quickly adapt to market trends, streamline production timelines, and lower minimum order quantities (MOQs), making large-scale manufacturing accessible for small brands while minimising waste.

The brain of manufacturing

A report by the Business of Fashion highlights that globally about $16 billion is lost annually due to inventory write-offs by apparel brands.

ZYOD’s ERP software, which the company calls the “brain of manufacturing”, looks to cut that by integrating and optimising the entire production process by guiding factories on what, how, and when to produce, ensuring maximum capacity utilisation. The platform helps factories manage components, fabric usage, and cutting patterns efficiently, and replaces traditional management methods with a daily production reporting system for better operational planning.

“Brands today need a flexible supply chain that adapts to consumer demand in real-time. Our technology enables them to not only produce fashion faster but also minimise waste and optimise costs. This has become a critical factor in an industry that is increasingly moving towards sustainability,” Jaipuria explains.

The startup, which has an employee strength of 100, including a 20-person tech team, utilises propreitary AI-powered tools to analyse datasets and predict emerging fashion trends, allowing brands to launch new collections while minimising inventory risks and streamlining their supply chains to adapt to real-time market demands.

ZYOD claims to enable brands to launch new styles within 21 days and with MOQs as low as 50 pieces or worth Rs 1.5 lakh. It is currently working with around 40 designers and has expanded its catalogue to 10,000 styles per month.

“Our approach breaks down subjective design elements into objective data points. This allows us to predict what styles will resonate with consumers, months ahead of market trends,” he states.

Earlier this year, the startup launched a mobile app for iOS and Android, allowing users to browse styles, place orders, and track deliveries on the go. The app also features an image search tool and virtual sampling, enabling customers to visualise designs before placing orders.

Shift to enterprise clients

Initially catering to D2C brands with fast launches and low MOQs, ZYOD pivoted to enterprise clients in October last year.

“Our early clients were mostly smaller D2C brands looking for quick and flexible solutions. Later, we realised the potential to work with larger enterprises, which opened up new opportunities,” Jaipuria notes.

Currently, the company caters to about 550 customers across 18 countries including Reliance, FirstCry, Rare Rabbit, Allen Cooper, Tata Cliq, Muse, NEXT etc. It has also onboarded international customers including Japan’s Urban Research, Boohoo in the UK, and VAN-DOS in Spain.

India currently contributes 30-50% to the company’s overall business, depending on the season.

Business model

ZYOD charges customised subscription fees based on client needs and project scope. It has partnered with 25 suppliers across India to source fabrics.

While, the company produces the apparel at its own manufacturing units, as well as third-party units in Delhi-NCR and Jaipur, and has plans to expand to Bengaluru, Ludhiana, and Tiruppur in Tamil Nadu.

Jaipuria adds, “We standardise the operations across all manufacturing partners using their proprietary tech-enabled ERPs, ensuring consistent quality control and operational efficiency.”

Its manufacturing capacity currently stands at 2.5 million pieces but can be scaled up to 3-4 million pieces within 15-20 days of receiving an order.

The startup competes with Gurugram-based Fashinza but its USP lies in streamlining the design-to-delivery process, reducing waste and optimising efficiency.

The way ahead

ZYOD raised $18 million in its Series A funding round in June, led by RTP Global and with participation from investors including Trifecta Capital, Lightspeed, and Alteria Capital. It will use the capital to expand operations to over 40 nations, including Australia, Brazil, and the African region, while also focusing on talent acquisition and technology development.

It is also working on automating parts of the production process through IoT (Internet of Things) solutions, including QR code tagging, RFID tracking, and enhancing machines for stitching and cutting. With it, it aims to reduce human error and increase efficiency.

The startup also plans to improve supply chain efficiency by enhancing communication between brands and manufacturers through future updates on its app.