Climatetech startup GreenStitch raises $1.2 million in a seed funding round

GreenStitch, a Bengaluru-based climate tech startup focusing on the fashion and textile industry, has raised $1.2 million in a seed funding round led by Equirus InnovateX Fund.

Ivycap Ventures, Warmup Ventures and Zeca Ventures also participated, along with angel investors including Anshuman Bapna, Sumit Jain, Pankaj Vermani and Amit Kumar.

The company plans to use the funds to expand its team, strengthen its proprietary product offerings and develop a large database tailored to the fashion and textile sectors.

Bridging supply chain gaps

Founded in 2022 by Narendra Makwana and Arpit Samdani, GreenStitch offers a sustainability-focused software-as-a-service (SaaS) platform that integrates directly with enterprise ERP and PLM systems.

By pulling data from various supply chain tiers, identifying missing information and harnessing AI and machine learning to fill those gaps, the platform helps fashion and textile companies calculate reliable Scope 3 greenhouse gas (GHG) emissions.

As new climate regulations emerge, GreenStitch aims to ease the often complicated process of tracking carbon footprints throughout the production lifecycle.

Data-driven decarbonization

Beyond emissions calculations, GreenStitch provides tools for decarbonization and predictive modelling. This includes analyzing how design choices and supplier decisions impact carbon emissions, allowing businesses to adopt sustainable strategies before production begins.

According to Makwana, the startup currently serves more than 20 customers in six countries. Roughly 58% of its revenue comes from India, and the rest is generated abroad. With the latest funding, the company expects to onboard at least 100 more enterprises over the next year.

Boosting eco-conscious demand

GreenStitch’s expansion comes at a time when environmentally aware consumers are influencing brand choices, while stricter regulatory requirements compel manufacturers to track and reduce their carbon output.

Sunder Nookala, general partner at Equirus InnovateX Fund, said the startup’s solution “comes at a perfect time, as millennials increasingly demand eco-conscious clothing and regulatory requirements tighten.”