STCH Raises $7M to Transform Textile Manufacturing

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Bengaluru-based startup STCH has raised around $5.5–$7 million in a pre-Series A funding round led by Omnivore. Other investors include Kae Capital and White Venture Capital. The company was founded in 2025 by former Zetwerk executives Narahari Payala and Aseem Chitkara.

STCH works as a Contract Development and Manufacturing Organisation (CDMO) in the textile space. Instead of focusing on fashion design like many startups, it is solving problems in manufacturing and supply chains. Its goal is to make fabric production faster, cheaper, and more efficient for global brands.

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AI helps create fabrics faster and cheaper

STCH uses an AI-based system, often called a “fabric GPT,” to understand global fashion trends. It can scan images and descriptions to figure out what kind of fabric is needed. The system identifies details like texture, weight, and finish, and then creates a clear “recipe” for making that fabric.

This reduces the usual trial-and-error process in textile development. Because of this, STCH has cut the time from idea to production to about 45 days. It also helps brands find the right manufacturers, which can reduce sourcing costs by up to 20%. The company does not own factories. Instead, it works with a network of partner mills across India and Bangladesh, using more than 1,000 machines. This asset-light model helps brands spread their production and avoid risks of depending on one location.

Focus on sustainability and growing demand

Sustainability is an important part of STCH’s plan. The startup is working on fabrics made from biodegradable or recycled materials. One example is a cotton-based fabric that feels like polyester, helping reduce microplastic pollution.

Even though it was operating quietly until now, STCH has already built an order book of over $15 million. It works with global brands like Shein, Crocodile, Being Human, Roman, Joe Browns, and CP Brands. The company mainly serves markets in the UK, Europe, and the US. With strong demand for faster and sustainable fashion, STCH is aiming to reach Rs 100 crore in revenue by FY 2027 and strengthen India’s position in global textile manufacturing.