Electronics Era: Explore Groyyo as a company, its achievements and its business in India?
Subin Mitra: Groyyo is a B2B supply chain enablement platform dedicated to sustainability and value addition across the textile supply chain. We democratize global supply chains by uniting brands and MSMEs on a single platform, thereby creating demand access for MSMEs and building a reliable supply pool for brands. Founded in July 2021 by Subin Mitra & Pratik Tiwari, the company has till date empowered over 500 manufacturers across 175+ product categories in more than ten countries by maximising their manufacturing potential.
Groyyo offers a comprehensive suite of products and services, including fabric sourcing, garment manufacturing, and quality assurance. Our mission is to empower manufacturers through advanced technology and operational excellence, revolutionizing the manufacturing landscape to make it more efficient, transparent, and sustainable.
We are the world’s first manufacturer-first automation platform, addressing the specific pain points of factory workers and owners of garment production units particularly . Unlike existing technologies that often overlook user experience and simplicity, our platform prioritizes intuitive design and ease of use. This tailored approach sets Groyyo apart as the first platform dedicated to genuinely meeting the needs of the manufacturing sector.
In India, we cater to brands such as Myntra, Damensch, TIGC, USPL, Wrogn, and Pepe Jeans, among many others. Globally as well, we work with marquee brands such as Mango, Inditex, Ross, Next and the Landmark Group.
In January 2024, we completed our third funding round, successfully completing a $5.4 million debt raise from Lighthouse Canton and Trifecta Capital. In total, the company has raised $50 million from a diverse portfolio of investors and HNIs. These funds have been strategically allocated to two key areas: expanding our export capabilities and enhancing our SaaS platform. Our aim is to transform our SaaS into a comprehensive operating system for factory operations, making it more robust and efficient.
In the past year, we have tripled our gross margins. Our next objective is to double the export contribution to our revenue by targeting newer markets. We have built an extensive network of MSMEs for international buyers, providing a comprehensive one-stop solution for clean, sustainable, and ethical sourcing needs.
Electronics Era: How Groyyo is dedicated to promoting India as a global manufacturing hub under Make in India?
Subin Mitra: We are dedicated to advancing India as a leading global manufacturing hub through the Make in India initiative. Recognizing India’s historical significance in manufacturing, we aim to build on this legacy by promoting the China + 1 strategy, positioning India as a key player in global supply chains.
We focus on empowering micro and small manufacturers with advanced technology, including tools that collect shop floor data in vernacular languages, facilitating easier adoption of digital tools. Additionally, we are committed to upskilling the workforce to enhance India’s manufacturing capabilities, ensuring our labor force meets and exceeds international standards.
A significant part of our efforts involves working with manufacturers in rural regions near Ranchi and Tirupur. By providing these manufacturers with access to advanced technology and comprehensive training programs, we help them improve their production processes, enhance product quality, and achieve critical certifications. This support enables them to compete on a global scale and integrate into international supply chains.
Through these efforts, we drive sustainable development and reinforce India’s status as a preferred destination for high-quality manufacturing under the Make in India initiative.
Electronics Era: How does the Groyyo platform empower MSMEs & SMEs?
Subin Mitra: Groyyo’s industry automation platform is a notable solution to support manufacturers. It integrates various aspects of the manufacturing process, from order management and production scheduling to quality control and logistics, ensuring smooth workflows. The platform uses real-time data and analytics to help manufacturers make informed decisions, optimize operations, and reduce waste. Designed to be scalable, it serves both small-scale manufacturers and larger enterprises, with a modular architecture that can be customized to meet specific client needs.
Our technology, actively being used in India and Bangladesh, addresses quality issues and improves inventory tracking. We are dedicated to supporting our partners by ensuring timely, high-quality deliveries and becoming an integral part of their supply chain.
For small manufacturers, Groyyo provides access to an extensive network of buyers, advanced technological tools, and financial support to scale their operations. Fashion brands benefit from our streamlined supply chain, ensuring the delivery of high-quality products on time. Our unique advantage lies in integrating technology with industry expertise, offering customized solutions tailored to the specific needs of our clients. By incorporating vernacular languages and focusing on user-friendly interfaces, Groyyo ensures that its technology is accessible and effective for manufacturers.
Electronics Era: How do you see the Union Budget 2024 for MSME & SME Industry?
Subin Mitra: The government’s renewed focus on MSMEs is commendable. Ensuring timely financing, promoting technological adoption, and providing skill training are exactly what MSMEs need. Facilitating term loans without third-party collateral for purchasing machinery will motivate young entrepreneurs to set up production units, enhancing India’s manufacturing capabilities. The credit guarantee scheme addresses a major pain point for small manufacturers—managing net working capital. By providing relief and financial runway, it ensures businesses can sustain and grow their operations effectively. These initiatives collectively foster a conducive environment for MSME growth, driving innovation and boosting economic development. Overall, the budget addressed some of the critical areas for MSME growth and we see it as a positive step.
Electronics Era: Do the crises in Red Sea and European market recently affected the logistics and overall business worldwide and how does its impact on your business?
Subin Mitra: Global supply chain disruptions, such as the Suez Canal crisis and ongoing geopolitical tensions, present both challenges and opportunities for Groyyo. While these disruptions can cause delays and increase costs by hindering the smooth flow of goods and materials, they also underscore the need for resilient and adaptable supply chain solutions, which is our strength.
A significant opportunity we foresee is the trend toward near-shoring, particularly from regions like Turkey. Near-shoring enables companies to move their production closer to their markets, reducing transit times and mitigating risks associated with long-distance shipping. By leveraging Turkey’s strategic location and robust textile manufacturing capabilities, we can offer our clients faster turnaround times and greater flexibility in their supply chains.
To capitalize on these opportunities, we are expanding our network of manufacturers, investing in advanced supply chain technologies, and exploring new markets. By focusing on building a resilient and adaptable supply chain, we aim to provide our clients with the stability and reliability they need in an increasingly uncertain global landscape. This approach not only helps us navigate current challenges but also positions us for sustained growth and success in the future.
Electronics Era: How do you maintain the International quality and standards to meet the demands of global retailers?
Subin Mitra: We implement a multi-layered approach to ensure quality. We have on-ground QA teams in all our supply hubs, including Tirupur, Delhi NCR, Surat, Dhaka, and Chittagong, to provide continuous oversight and support. For our tech-enabled factories, we customize specifications within the devices according to buyer requirements, enabling precise analysis of passes and rejects and ensuring consistent adherence to quality standards. Recognizing that different countries require various certifications for imports, we partner with factories that hold essential certifications such as GOTS, SEDEX, GRS, ISO:9001:2008, and BCI. Beyond partnering with certified factories, we also actively assist them in improving their standards to achieve and maintain these certifications. This ensures that our supply chain remains compliant with international quality and ethical standards, enabling us to consistently meet the high expectations of global retailers.
Electronics Era: What are your future plans for Groyyo and where do you see the company in the next five years?
Subin Mitra: Our future plans for Groyyo are ambitious and multifaceted. We aim to enter new geographic regions, including Australia and New Zealand, while diversifying our product offerings and continuing to innovate in textile manufacturing. In the next 12-15 months, we plan to double the export contribution to our revenue, with a primary focus on the US and European markets, and expand into Australia and New Zealand.
Additionally, we intend to broaden our supply base to Vietnam and Indonesia, positioning ourselves to become the largest aggregated supply chain outside of China. By executing these strategic initiatives, we envision Groyyo establishing a significant global presence, leading the industry in innovation, sustainability, and comprehensive supply chain solutions over the next five years.
