Surat-based B2B textile startup Fantail raises Rs 13.75 crore in a seed funding round

Fantail, a Surat-based startup focused on modernizing textile manufacturing, has raised Rs 13.75 crore (approximately $1.6 million) in seed funding from Riverwalk Holdings, Incubate Fund Asia and All In Capital.

Founded in 2023 by industry veteran Ramya Iyer, Fantail operates a business-to-business platform that integrates end-to-end textile manufacturing in the MMF segment. The company partners directly with weavers, mills, processors, and value-addition units, managing production from raw yarn to finished garments.

The fresh capital will be used to upgrade machinery, streamline backend operations, and bolster SME partnerships across Surat—India’s textile nerve center. Fantail will also invest in hiring talent across design, quality control, and technical domains, it said.

"In B2B, timing is of great significance. I've worked in the Surat ecosystem for over a decade, and I believe the coming years will be pivotal for Manufacturing 2.0," said Ramya Iyer, Founder of Fantail. "If we solve for scale and efficiency, we can harness the true potential of this ecosystem. With the right team and patient capital, we believe we can build a globally recognized MMF brand from Surat."

The startup designs and manufactures fabrics for enterprise clients across value, premium, and luxury categories, serving as a supply-chain bridge between traditional SMEs and organized fashion retail. It also aims to build proprietary software tools to enhance operational efficiency and improve demand responsiveness.

“There’s no brand that currently stands for quality and design in this space,” said Jai Sumer Singh of Riverwalk Holdings. “Fantail is poised to change that through standardization and customer-first innovation.”

Rajeev Ranka, partner at Incubate Fund Asia, added, “Fantail is digitizing a highly fragmented supply chain. It offers a reliability layer that’s been sorely missing in the MMF industry.”

All In Capital partner Aditya Singh noted that Iyer’s operational depth and domain insight made the venture compelling. “Ramya combines decade-long industry knowledge with clarity on how to modernize Surat’s textile infrastructure,” Singh said.