Manufacturing automation startup has raised $5.4 million (~Rs 40 crore) in debt funding from Lighthouse Canton and venture financing platform Trifecta Capital. This comes a few months after the firm shut down its loss-making raw material trading business.
In October last year, audit firm Deloitte was appointed by investors Tiger Global and Alpha Wave to ‘work with’ Groyyo to evaluate and eventually close down the trading business, The Economic Times had reported.
The enablement platform will use the funding to establish partnerships with a greater number of small and medium enterprises and help them go global. The USD facility led by Lighthouse Canton will enable Groyyo to scale its presence in the UAE, it said in a statement on Thursday.
Founded in July 2021 by Subin Mitra, Pratik Tiwari, and Ridam Upadhyay, Groyyo is a supply chain enablement platform which helps digitise manufacturing small and medium businesses and match demand and supply from national and international clients.
It has onboarded more than 100 brands with over 350 factories to its portfolio till date, according to the company.
Groyyo last raised $40 million in Series A funding in a mix of debt-equity led by Tiger Global with the participation of Alpha Wave, Stride Ventures, and Sparrow Capital.
In January last year, the company of the Private Office of Sheikh Saeed bin Ahmed Al Maktoum, Seed Group, partnered with Groyyo for B2B fashion and retail manufacturing and sourcing processes with technology. Its other international markets include Bangladesh, Vietnam, and Turkey.
The company said it achieved EBITDA profitability with an annualised revenue run rate of Rs 1,600 crore in FY23.
“This infusion of incremental capital will enable us to further fuel our goal of empowering SME manufacturers across South Asia to take their business global and digitise their shop-floor through our in-house technology solutions. This also lies strongly in sync with Govt. of India’s Make in India mission; as we work tirelessly to bring more and more of international demand to the subcontinent,” Subin Mitra, Co-founder and CEO of Groyyo, said.
Ankit Agarwal, Director (Venture Debt) at Lighthouse Canton, added, “We have been monitoring their progress and the team has demonstrated strong resilience and execution capabilities in a challenging macro environment. Lighthouse Canton today is the only institution capable of providing INR and USD financing to Indian start-ups with global ambitions and we hope our partnership will help in Groyyo’s mission to reshape manufacturing and democratise supply chains across key apparel hubs in the world.”
