STCH Raises $5.5 Million in Pre-Series A Funding
Bengaluru-based STCH, a textile technology startup, has successfully raised $5.5 million in a pre-Series A funding round. The round was led by Omnivore, with additional investments from Kae Capital and WVC. STCH focuses on connecting demand sensing, fabric development, sustainability innovation, and reliable execution through an intelligent supply system.
Founders' Vision
STCH was founded in 2025 by former Zetwerk executives Narahari Payala and Aseem Chitkara. The startup aims to modernize the fabric development process, traditionally reliant on trial-and-error methods. "Fabric development today is trial-and-error. One may need 20 iterations to get one output right," said Narahari Payala, Co-founder and CEO of STCH.
Strategic Use of Funds
The newly acquired funds are earmarked for expanding STCH's AI capabilities, building a dedicated fabric research and development lab, and strengthening partnerships with textile mills. Additionally, the company plans to enter new markets, including the United States and Spain.
AI-Driven Fabric Development
STCH operates as a contract development and manufacturing organization (CDMO), collaborating with global brands like Shein, Crocodile, and Being Human. The company leverages AI to analyze global fashion trends, decode fabric compositions through image and data analysis, and recreate similar materials via its research and manufacturing network across India and Asia.
"What we are building is a system that understands the relationship between inputs, be it fibers, chemicals, processes, and outputs like softness, durability, or texture," Payala explained. The startup is also working on a "fabric GPT," a system trained on large datasets of textile formulations and outcomes, aimed at reducing research and development time.
Market Expansion Plans
With the fresh funding, STCH is set to enhance its market presence by entering the US and Spanish markets. This expansion aligns with the company’s goal to offer innovative fabric solutions to a wider audience.
Overall, the funding marks a significant milestone for STCH as it positions itself to become a leader in AI-driven fabric development and manufacturing.