Interesting Funding alert- Startup Groyyo announced funding of USD 4.6 million
The year 2021 proved itself to be lucky for startups, as we saw the emergence of many unicorn startups and fundings of startups happening. We hope and wish that year 2022 proves itself to be luckier in terms of startups and fundings.
Let us talk about funding and the startups. Funding can be defined as the process in which money is infused or put into the business or a startup. We all are aware that cash, which is the funds is the one that primarily drives the business. If we have cash, we can think of the future. We can make plans for a bright future ahead. It gives us, the business, the startup a motivation, a push to move forward, to move ahead. We have many potential investors, venture catalysts, angel investors, who look out for innovation, different startup ideas and invest accordingly.
Let us discuss the funding of a startup that has taken place recently.
Announcement of funding of a startup
The startup, Groyyo, has raised funds worth USD 4.6 million, as announced on January 03, 2022. This round of funding was the seed funding round and was led by Alpha Wave Incubation, which is a startup incubator that is managed by Falcon Edge Capital. The other participants of this round of funding were Sparrow Capital and Stride Ventures. Many angel investors were also a part of this round of funding. They were Deepak Jain and Arpan Seth of Bain & Co., Maninder Gulati, who is the global chief strategy officer of Oyo, and Anjali Bansal, who is the chairman of Bombay Chamber of Commerce.
The startup plans to use the funds raised in building its team across important and key manufacturing clusters in South Asia. It will also use some funds for expansion into the United States and the Middle East. The startup also plans to invest a portion of funds in the technological and physical up-gradation and advancement of its manufacturing partners.
About the startup that recently received funding
The startup, Groyyo, was founded in the year 2021 by Subin Mitra, Ridam Upadhyay, and Partik Tiwary, and has its headquarters in Mumbai, Maharashtra. The startup helps in growing the factory bigger, smarter, global, and faster so that the business can be carried to the next level. It uses the help of artificial intelligence to boost and improve the efficiency of a manufacturing industry, which is small and extremely fragmented.
The startup is engaged in empowering factories of the following categories-
Apparel, Footwear, Furniture, Accessories, Handicraft, Home Furnishings, Ceramic, and Beauty. It makes the factory world-class by making it clean, smart, digital, efficient, and compliant to the international standards for the global demand.
The Groyyo-standard features are as follows-
Global ‘Factory-First’ Demand– The Groyyo-Standard takes the factory global for the next level of international demand.
Smart digital factory– The Groyyo-standard makes the factory smart by infusing technology.
Complete Mobile control- The Groyyo-standard gives entire control of the factory in the mobile of the owner.
Groyyo’s ERP– The Groyyo-Standard comes with ERP for automating all the operations of the factory.
Clean and Compliant– The Groyyo-standard makes the factory clean and compliant with international standards.
Cost-Efficient– The Groyyo-standard gives the factory owners all the business reports for cost efficiency.
The startup claims to have made possible the digitization of 200 small and medium-sized enterprises in the last six months. According to the startup, a “Groyyo-standard factory” will be able to see an increase in revenue by 15% and an increase in profitability by 20%.
What has been said about the funding deal?
The Chief Executive Officer of the startup, Groyyo made a statement saying that the future of global sourcing is to be controlled and dominated by small manufacturers. He then said that there is a rise and dominance of D2C, which is a direct-to-customer brand. So, with this, there is a huge and alarming need for transparent, compliant, quality manufacturers, who can meet the needs like low minimum order size, fast turnaround times, and competitiveness in price.
He further commented that the mission of the startup is to bring technology to the millions of micro-manufacturers across South Asia and eventually change the face of sourcing around the world.
Anirudh Singh who is the managing director of Alpha Wave Incubation said that the organization was impressed by the supply first approach which is adopted by the startup, which is a source of big help to them in meeting the needs of various categories and products to serve buyers around the world. He further said that Alpha Wave Incubation also thinks that the solution of the Groyyo will provide a platform to the manufacturing segment of South Asia, which is small and rising and is hungry to work with clients of large scale.
About the manufacturing sector of our country
IBEF has made claims which says that the manufacturing sector of India has the potential and capacity to reach USD 1 trillion by the year 2025. According to the predictions made by Indian Cellular and Electronics Association, which is the ICEA, the country, India, has the potential to increase and scale up its manufacturing capacity of cumulative laptops and tablet to USD 100 billion by the year 2025.
The honourable Prime Minister of our country, Shri Narendra Modi, has launched the “Make in India” initiative, with the aim to create 100 million jobs in the manufacturing sector. In accordance with this initiative, even the Finance Minister, Nirmala Sitharam, has declared the distribution of INR 1.97 crore for product-linked incentive schemes across 13 important sectors in March 2020.
About seed funding of a startup
Seed funding is a process when an investor invests capital in the startup in exchange for a stake in equity or a convertible note stake in the startup. It is a very early investment, which is done with the aim of supporting the business till the time it is capable of generating its own cash or future investments. Normally, in seed funding, friends, family members, and the owners themselves invest in the startup.
The startup is growing and has an innovative and promising aim. We wish the startup a piece of good luck and a bright and successful future ahead.
Edited and Proofread by Ashlyn
