ReshaMandi, India’s first and largest B2B digital ecosystem for silk, raised USD 30 million in a Series A funding round led by global alternative investment manager Creation Investments and other investors on 12 October 2021. This round featured a mix of debt and equity.
Investors: Global alternative investment manager Creation Investments led the latest funding round with participation from 9 Unicorns, Sandeep Singhal from Nexus, Venture Catalysts, Brijesh Agarwal, founder of IndiaMART, and Omnivore. Northern Arc, Alteria, Innoven, and Stride Ventures provided the debt capital in this round.
The Objectives behind the funding: The company plans to deploy the current proceeds to expand its agricultural business in all significant silk-producing states across India and operationalise its R&D work. The company also plans to extend its retail footprint further into Agra, Kota, Ranchi, Gorakhpur, Dhanbad, Bhopal, Indore, Jabalpur, Vadodara, Rajkot, Surat, Pune, Nagpur, Satara, Visakhapatnam, Vijayawada, Madurai, Coimbatore, Kochi, and Kannur, over the next three to six months. In addition, funds will be used to launch a whole new range of saris and other fashion wear in Tier-II towns in India.
Founded in May 2020 by Mayank Tiwari, Saurabh Agarwal and Utkarsh Apoorva, ReshaMandi offers a full-stack digital ecosystem in the form of an effective app, beginning from farm to retail. The company has on-boarded over 35,000 small businesses spanning across farmers, SME manufacturers, and retailers onto its supply chain, impacting more than US$ 1.5 billion worth of the market in the initial 15 months of its operations. Its processes have assisted in increasing small business incomes by 35-55% and the use of indigenous raw silk dramatically.
What the founders have to say:
“ReshaMandi is built on relationships, and we are excited with the new partnerships we are entering with Creation and others,” Mayank said. "This round of funding will allow us to expand into newer territories and operationalise our R&D work while helping further stakeholders reap the benefits of our innovations and efficiencies. On a personal note, I would like to thank each and every one of our customers, suppliers, investors, and of course the ever-growing ReshaMandi team.”
“Shortly after this round, a whole new range of saris and other fashion wear will be available in Tier-II towns in India where we are expanding,” said Utkarsh Apoorva, Co-founder, and CBO, ReshaMandi. "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."
“Technology remains the core foundation for us,” said Saurabh Agarwal, Chief Technology Officer, ReshaMandi. "With this round, we can enable contributors with financial solutions that will boost their production via scientific advisories and improvements, give access to a democratised marketplace, and the ability to create products that are of high quality and set the stage for international recognition, which is long due for Indian silk."
What the Investor has to say:
“We are delighted to lead this funding round for ReshaMandi. With India producing 30% 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,” said Tyler Day, Partner at Creation Investments.
India is world’s second-largest producer of raw silk and the largest consumer of silk and silk fabrics. The Indian sericulture market is projected to grow at a CAGR of 18.6 per cent during 2021-2026. The technology-led startup, ReshaMandi, aims to reduce the current gap between demand and production that imports currently meet. Reshamandi’s proprietary AI and IoT technology is streamlining the silk industry and seeks to build a zero-waste circular economy that will have a substantial social, environmental, and economic impact for all the stakeholders of the silk supply chain.
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