Surat-based B2B textile manufacturing startup Fantail has made waves in the Indian startup ecosystem by raising INR 13.75 crore (approx. USD 1.6 million) in a seed funding round. The round was led by Riverwalk Holdings, Incubate Fund Asia, and All In Capital, aiming to bring about a significant transformation in the man-made fabric (MMF) supply chain. Fantail, founded in 2023 by Ramya Iyer, is setting out to modernize the traditionally unorganised textile sector in Surat, the city known as India’s textile capital.
A Founder with Deep Industry Roots and Vision
Ramya Iyer, the founder of Fantail, has worked in the Surat textile ecosystem for over a decade. Her vision for Fantail is rooted in her deep understanding of the industry. She believes that “timing is of great significance in B2B”, and the years ahead are critical for initiating Manufacturing 2.0 in India. Ramya’s long-term experience gives her a clear sense of the challenges and the tremendous opportunities that lie in transforming the MMF sector. With a focus on solving problems related to scale and efficiency, she is confident that Fantail can harness the true potential of Surat’s textile industry. Her goal is to establish a globally recognized MMF brand that is proudly “Made in India.”
Integrating the Entire Textile Supply Chain
Fantail operates with a full-stack manufacturing model, integrating all stages of the MMF supply chain. From yarn to finished garments, Fantail works directly with weavers, mills, processors, and value addition units. This complete integration allows the company to ensure consistency in quality, streamline production processes, and maintain greater control over timelines and costs. By targeting the man-made fabric (MMF) segment, which contributes significantly to India’s textile exports, Fantail is addressing an area that has been underserved by innovation and digitisation.
Empowering SMEs in Surat’s Textile Belt
With the fresh capital infusion, Fantail aims to empower small and medium enterprises (SMEs) in Surat. These SMEs, although skilled in traditional methods, often lack access to modern machinery, operational tools, and skilled talent. Fantail plans to upgrade their capabilities, enhance their processes and equipment, and bring them in line with global manufacturing standards. Additionally, the startup will invest in hiring talent across design, quality control, and technical domains, helping SMEs become more competitive in both domestic and international markets.
Connecting Traditional Units to Modern Fashion Retail
One of Fantail’s major innovations is its ability to act as a bridge between traditional textile units and organized fashion retail. It designs and manufactures high-quality fabrics for enterprise fashion brands, catering to the value, premium, and luxury segments. This approach not only ensures better pricing and reliability for retailers but also provides a consistent revenue stream for SMEs. As India’s fashion industry evolves, organized retailers are demanding quality, traceability, and speed. Fantail’s integrated model helps meet these demands by offering reliable production schedules, traceable supply chains, and responsive service levels.
Building Proprietary Technology for Efficiency
A portion of the funds will be used to develop backend technologies that improve traceability, operational efficiency, and responsiveness. These proprietary systems will help the company maintain real-time oversight of production, ensure quality checks, and respond quickly to customer demand. In a space where speed and reliability are key, technology can help unlock significant value. By introducing digitisation into an otherwise manual and fragmented industry, Fantail is making it easier for global retailers to work with Indian manufacturers.
Backed by Seasoned Investors
Investors in the seed round expressed strong belief in Fantail’s potential to change the game in the textile sector. Jai Sumer Singh of Riverwalk Holdings stated that there is no established brand currently representing quality and design in MMF, and that Fantail is well positioned to fill that gap through standardisation and customer-first innovation. Rajeev Ranka, Partner at Incubate Fund Asia, emphasized that Fantail is digitising a fragmented supply chain, unlocking reliability and speed for retailers and exporters. Aditya Singh of All In Capital highlighted Ramya’s deep domain knowledge and executional clarity, making Fantail a unique and powerful player in the INR 3.3 lakh crore (USD 40 billion) MMF industry.
The Untapped Potential of Surat’s MMF Industry
Surat’s MMF market is a massive yet fragmented industry, known more for its volume than its innovation. Despite being a textile powerhouse, Surat has few brands that stand for quality, innovation, and consistency. Fantail’s focus on organizing this market, especially with technology and scalability in mind, is a welcome change. The city’s SMEs have the talent and experience but often lack the tools and support to scale. Fantail’s mission is to provide that missing layer of infrastructure and innovation, ensuring that the products coming out of Surat meet the expectations of modern fashion brands across the globe.
Expanding Footprint Across Asia and MENA
Fantail has ambitious growth plans. While the immediate focus remains on strengthening its base in Surat, the company is also eyeing expansion into Asia and the Middle East and North Africa (MENA) regions. These markets are showing rapid growth in fashion retail and sourcing. By establishing itself in these regions, Fantail aims to become a key player in the global fashion supply chain. Its approach to local empowerment, combined with a global vision, gives it a strategic edge in international markets.
Fantail’s successful INR 13.75 crore seed funding round marks a critical milestone in the journey of modernising India’s textile supply chain. With its founder-led vision, technology-first approach, and investor confidence, Fantail is well on its way to becoming a global MMF brand from India. By combining traditional craftsmanship with modern innovation, Fantail not only empowers Surat’s SMEs but also positions India as a hub for quality textile manufacturing in the global arena.
As the startup ecosystem in India continues to grow, Fantail stands out as an example of how deep industry knowledge, digital transformation, and strategic funding can converge to create lasting impact.
