Manufacturing automation startup Groyyo has successfully secured $5.4 million (~Rs 40 crore) in debt funding from Lighthouse Canton and venture financing platform Trifecta Capital. The funding comes on the heels of Groyyo’s strategic decision to cease its unprofitable raw material trading business a few months ago, following an evaluation by audit firm Deloitte, initiated by investors Tiger Global and Alpha Wave in October of the previous year.
The funding injection will empower Groyyo, founded in July 2021 by Subin Mitra, Pratik Tiwari, and Ridam Upadhyay, to forge partnerships with an expanded array of small and medium enterprises, facilitating their global expansion. The startup plans to utilize the capital to enhance its presence in the United Arab Emirates, according to a statement released on Thursday.
As a supply chain enablement platform, Groyyo focuses on digitizing manufacturing processes for small and medium businesses, connecting them with demand and supply from both national and international clients. The company boasts a portfolio of over 100 brands and collaborates with more than 350 factories. Groyyo had previously raised $40 million in Series A funding, led by Tiger Global, with participation from Alpha Wave, Stride Ventures, and Sparrow Capital.
Groyyo’s international reach extends beyond its recent funding, with key markets in Bangladesh, Vietnam, and Turkey. The company reported achieving EBITDA profitability, boasting an annualized revenue run rate of Rs 1,600 crore in the fiscal year 2023. Subin Mitra, Co-founder and CEO of Groyyo, expressed enthusiasm for the additional capital infusion, stating that it aligns with the company’s mission to empower SME manufacturers in South Asia to globalize and digitize their operations, in line with the Indian government’s Make in India initiative.
Ankit Agarwal, Director (Venture Debt) at Lighthouse Canton, commended Groyyo’s resilience and execution capabilities in a challenging macro environment. He emphasized Lighthouse Canton’s unique position as the sole institution capable of providing INR and USD financing to Indian startups with global aspirations. Agarwal expressed optimism that their partnership with Groyyo will contribute to reshaping manufacturing and democratizing supply chains in key apparel hubs worldwide
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