Fantail, a man-made fibre (MMF) company, has raised Rs. 13.75 crore (US $ 1.65 million) in seed funding. Riverwalk Holdings, Incubate Fund Asia, and All In Capital led the round. The company will use the capital to further entrench its operations in Surat’s MMF ecosystem, the world’s second-largest textile ecosystem.
Founded in 2023 by Ramya Iyer, Fantail works collaboratively with Surat-based small and medium-sized enterprises (SMEs) including weavers, mills, and processors to build an integrated supply chain for the fashion retail industry. The company works with partners across the entire value chain from yarn to finished garment, supporting operational efficiencies and predictability of output for enterprise partners.
The capital will fund investments in partner infrastructure, backend tech, and hiring across design, quality and technical functions. Fantail’s approach hopes to tackle legacy inefficiencies in the unorganized part of the sector.
The company intends to bridge the gap between the traditional manufacturing model in Surat and the needs of organized fashion retail in India and beyond. The textile industry in Surat generates more than US $ 40 billion in revenue, and Fantail wants to be an early mover in auto-scaling and modernizing the industry.
The funding also demonstrates increasing investor appetite for bringing fragmented supply chains in India’s traditional industries under one platform. With this funding round, Fantail will now be looking at building its capabilities and establishing deeper ties with local partners with the aim of creating a dependable and scalable production network.
