Fantail, a Surat-based textile manufacturing startup, has raised INR 13.75 Cr (approximately $1.6 million) in a seed funding round co-led by Riverwalk Holdings, Incubate Fund Asia, and All in Capital. The funding marks a significant milestone for the startup, which is aiming to transform the man-made fabric (MMF) industry with a tech-driven, B2B approach.
Strategic Investment to Upgrade Machinery and Strengthen Operations
Founded in 2023 by Ramya Iyer, Fantail is focused on manufacturing man-made fabrics such as nylon, viscose, and polyester. The newly raised capital will be primarily used to upgrade machinery at the company’s network of partner weavers, mills, and processors based in Surat—a city known as India’s textile hub.
Fantail plans to invest in modern equipment and smart technology to improve production efficiency, quality control, and scalability. A portion of the funds will also be allocated toward hiring skilled professionals in design, quality assurance, and technology, further bolstering the company’s capabilities.
Innovating the B2B Textile Manufacturing Landscape
Operating in the B2B space, Fantail differentiates itself by offering an integrated and collaborative production model. By partnering directly with a network of textile weavers and processors, the company ensures better control over quality, faster turnaround times, and consistent innovation.
Fantail’s focus on MMF aligns with the growing demand for synthetic and blended fabrics, which offer advantages such as durability, affordability, and versatility across fashion, sportswear, and industrial applications.
Backing from Leading Investors
The seed round was co-led by prominent early-stage investors, including Riverwalk Holdings, Incubate Fund Asia, and All in Capital. These firms bring not just capital but also strategic guidance and access to industry networks. Their backing underscores the confidence in Fantail’s business model, leadership, and long-term potential in the textile manufacturing sector.
Founder Vision: Blending Technology with Traditional Expertise
Ramya Iyer, the founder and CEO of Fantail, brings a deep understanding of the textile industry combined with a modern, technology-first perspective. Her vision is to make Fantail a next-generation textile manufacturer that leverages data, automation, and sustainable practices to deliver high-quality fabrics to domestic and global buyers.
“Our mission is to empower the traditional textile ecosystem with cutting-edge technology and efficient operations,” said Iyer. “With this funding, we aim to bring much-needed modernization to Surat’s textile landscape while supporting local weavers and mills.”
Conclusion: A Step Forward for India’s Textile Innovation
With strong investor backing and a clear roadmap, Fantail is well-positioned to drive innovation in India’s MMF sector. As the demand for man-made fabrics continues to rise globally, startups like Fantail are setting the stage for India to emerge as a competitive player in the global textile supply chain.
By focusing on modernization, sustainability, and community-driven manufacturing, Fantail is not only solving industry inefficiencies but also contributing to the economic growth of India’s textile heartland.
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