Silk-tech startup, ReshaMandi which serves as a B2B marketplace for silk farmers, businesses, and retailers in India, has raised $30 million as a part of its Series A funding round led by global alternative investment manager Creation Investments.
The equity plus debt round also saw participation from new investors such as 9 Unicorns, Venture Catalysts, Sandeep Singhal (Nexus), Brijesh Agarwal (founder of IndiaMART), and Omnivore, which also led the seed round of ReshaMandi. Debt investors include Northern Arc, Alteria, Innoven, and Stride Ventures, the company said in a statement.
Founded in May 2020, ReshaMandi provides a full-stack digital ecosystem, starting from farm to fashion. ReshaMandi's proprietary AI and IoT technology help to bring transparent and inexpensive solutions to streamline the silk industry starting with farmers’ productivity.
As per the startup, the IoT devices apart from analysing the rearing process also recommends the best irrigation practices to increase the biomass of the mulberry leaves. Timely access to quality eggs, powder disinfectants, and other materials on its app ensures that the farmers are not losing out on revenue.
The company has clocked a 30X jump in revenue in the first year of operations, it said in a statement. ReshaMandi works with 35,000 small businesses from farmers, SME manufacturers, and retailers.
"This round of funding will allow us to expand into newer territories and operationalize our R&D work while helping further stakeholders reap the benefits of our innovations and efficiencies," said Mayank Tiwari, CEO, ReshaMandi.
ReshaMandi plans to expand its agricultural business in all major silk-producing states across India while also establishing itself as a leader in weaving clusters like Banaras, Salem, Kanchipuram, Maheshwar, and Dharmavaram.
The company is looking to extend its retail footprint further into Agra, Kota, Gorakhpur, Rajkot, Vadodara, Surat, Pune, Nagpur, Satara, Madurai, Coimbatore, among others, over the next three to six months.
"Our supply chain ensures that silk becomes affordable, and is available to middle-class households across the country, with a design range and price points never seen before. This will change the way people in Tier-II shop for silk apparel," said Utkarsh Apoorva, co-founder, and CBO, ReshaMandi.
According to the startup, its processes have helped increase small business incomes by 35-55 percent and pushed the use of indigenous raw silk dramatically.
Tyler Day, partner at Creation Investments, said, with India producing 30 percent of the world's silk and still needing more to meet demand, companies like ReshaMandi can make the whole silk supply chain run more efficiently. "Ultimately, this benefits the whole ecosystem – from farmers and weavers to clothing manufacturers and buyers," Day added.
The firm further aspires to strengthen its position in this supply chain with this fresh round of capital. It aims at creating a zero-waste circular economy that will have a significant social, environmental, and economic impact on all the stakeholders of the silk supply chain.
(Edited by : Jomy Jos Pullokaran)