Stch, a Bengaluru-based textile technology startup, has successfully secured $5.5 million in a pre-series A funding round led by Omnivore. With participation from Kae Capital and WVC, the company will use the capital to enhance its artificial intelligence platform. It also plans to expand its partnerships with mills and fashion brands globally, aiming to modernize the fabric supply chain.
Revolutionizing Fabric Development
The traditional process of fabric development is often a lengthy and inefficient trial-and-error cycle. Stch aims to bring predictability to this fragmented industry by leveraging artificial intelligence to streamline design and manufacturing. Its platform analyzes global fashion trends and decodes fabric compositions from images and data to create precise production specifications.
Co-founder and CEO Narahari Payala explained the company is building a system to understand the relationships between materials and final fabric properties. This technology, described as a "fabric GPT," is trained on vast datasets of textile recipes and outcomes. The goal is to drastically reduce the research and development lifecycle, allowing brands to achieve desired results faster and at a lower cost.
A New Approach to the Fashion Supply Chain
Stch operates as a contract development and manufacturing organization, focusing on the often-overlooked backend of the fashion industry. Instead of owning factories, the company partners with a network of manufacturing facilities across India and Bangladesh. This asset-light model allows it to match brand demand with available production capacity efficiently.
This innovative approach offers significant advantages, including substantial cost savings and accelerated production timelines. One UK-based brand reduced its sourcing costs by nearly 20% by using Stch to replicate its fabrics in India. The platform caters to diverse needs, from fast-fashion players requiring rapid turnarounds to traditional brands focused on quality.
Strategic Growth and Market Expansion
With the fresh infusion of capital, Stch plans to make significant investments in its proprietary AI stack and establish a dedicated fabric R&D laboratory. The company will also focus on expanding its network of partner mills to increase production capabilities. These efforts support its planned entry into new international markets, including the United States and Spain.
Founded by former Zetwerk executives Narahari Payala and Aseem Chitkara, the startup has already demonstrated strong market traction. It has built an impressive order book exceeding $15 million from clients across the UK, Europe, and the US. The company currently works with prominent brands such as Shein, Crocodile, and Being Human.
Sustainability and Geopolitical Advantages
Beyond efficiency, Stch is also committed to advancing sustainability within the textile industry. The company is developing innovative textile formulations that replace petrochemical-based synthetics with biodegradable or recycled fibers. This work aims to eliminate the traditional trade-off between sustainability and fabric performance for fashion brands.
The platform's ability to recreate materials in new regions provides a crucial strategic advantage for its clients. As geopolitical risks influence global trade, this capability helps brands diversify their manufacturing base. Spreading production across more countries reduces concentration risk in their supply chains, ensuring greater stability.
This latest funding round positions Stch to disrupt the traditional textile manufacturing landscape with its technology-first approach. By focusing on the critical yet under-optimized fabric layer of the supply chain, the company is poised to become a key backend partner for global fashion brands. Its blend of AI, sustainability, and supply chain expertise signals a significant shift toward a more efficient and resilient industry future.