Fantail, a burgeoning B2B textile startup based in Surat, has successfully raised Rs 13.75 crore (approximately $1.6 million) in its seed funding round. The round was led by
Fantail, a burgeoning B2B textile startup based in Surat, has successfully raised Rs 13.75 crore (approximately $1.6 million) in its seed funding round. The round was led by Riverwalk Holdings with additional participation from Incubate Fund Asia and All In Capital. This fresh infusion of capital is set to accelerate Fantail’s vision of modernizing textile manufacturing in the man-made fiber (MMF) segment through technology-driven integration and efficiency.
Founded in 2023 by Ramya Iyer, a veteran of the textile industry with over a decade of experience in Surat’s ecosystem, Fantail operates a B2B platform that streamlines and unifies the entire textile production process. The startup’s core strength lies in its ability to integrate a wide network of stakeholders—from weavers and mills to processors and value-addition units—under one roof. This enables the company to manage the entire production lifecycle, from raw yarn to finished garments, offering clients a seamless and efficient manufacturing experience.
The company aims to bring Manufacturing 2.0 to Surat, often called India’s textile hub, by leveraging technology to optimize operations, enhance product quality, and reduce lead times.
Fantail plans to channel the newly raised funds into upgrading its machinery and streamlining backend operations to ensure scalability and operational efficiency. A significant portion of the investment will also focus on strengthening partnerships with small and medium-sized enterprises (SMEs) across Surat, enabling deeper collaboration within the textile value chain.
Additionally, the company will bolster its team by recruiting experts in design, quality control, and technical domains to support its growth ambitions and maintain high product standards.
Ramya Iyer, the founder of Fantail, emphasized the critical timing for transformation in the textile manufacturing sector. She stated, “In B2B, timing is of great significance. I’ve worked in the Surat ecosystem for over a decade, and I believe the coming years will be pivotal for Manufacturing 2.0. If we solve for scale and efficiency, we can harness the true potential of this ecosystem. With the right team and patient capital, we believe we can build a globally recognized MMF brand from Surat.”
Her experience and deep understanding of Surat’s textile landscape equip Fantail with the insight needed to unlock growth opportunities and overcome longstanding challenges such as fragmented supply chains, outdated machinery, and inconsistent quality standards.
Surat holds a vital position in India’s textile industry, known especially for its production of synthetic textiles and MMF fabrics. The MMF segment has been gaining traction globally due to its versatility and cost-effectiveness. However, the sector is often challenged by operational inefficiencies and a lack of integrated platforms that can bring together the different stages of manufacturing.
Fantail’s platform addresses this gap by offering a tech-enabled, end-to-end solution that simplifies production coordination, ensures quality assurance, and accelerates turnaround times. By doing so, the startup not only enhances the competitiveness of Surat’s textile industry but also positions itself as a key player in the global MMF market.
The participation of investors like Riverwalk Holdings, Incubate Fund Asia, and All In Capital reflects growing confidence in Fantail’s business model and potential. Their investment signals a broader recognition of the need for innovation within India’s traditional industries, especially textiles, to meet modern demands and global standards.
These investors bring more than just capital; their expertise and networks can help Fantail expand its footprint, adopt best practices, and explore international markets.
With the capital infusion, Fantail is poised to accelerate its growth trajectory. The company plans to expand its SME partnerships beyond Surat, tapping into other textile hubs across India. Additionally, there is potential to explore exports as demand for MMF products grows globally, especially in markets seeking affordable and sustainable textile options.
Fantail’s vision to unify production processes, enhance operational transparency, and deliver high-quality outputs aligns well with the broader Industry 4.0 movement—leveraging digital tools and automation to revolutionize manufacturing
Fantail’s successful seed round underscores the increasing appetite for innovation in traditional sectors like textiles. By marrying deep industry expertise with technology-driven solutions, Fantail is not only modernizing Surat’s textile landscape but also setting the stage to become a leading MMF brand on the global stage.
As the textile industry evolves, startups like Fantail will be instrumental in driving the next wave of manufacturing excellence in India, supporting economic growth and positioning the country as a key player in the global textile supply chain.
