Bengaluru-based textile know-how startup, STCH, has raised $5.5 million in a pre-Collection A funding spherical led by Omnivore, with participation from Kae Capital and WVC. 

The newly raised funds will likely be used to develop its AI stack, construct a cloth R&D lab, deepen mill partnerships, and enter new markets such because the US and Spain.

The startup, based in 2025 by former Zetwerk executives Narahari Payala and Aseem Chitkara, is making an attempt to modernise material improvement. 

“Material improvement as we speak is trial-and-error. One might have 20 iterations to get one output proper,” Payala mentioned.

STCH operates as a contract improvement and manufacturing organisation (CDMO), working with world manufacturers together with Shein, Crocodile and Being Human. It helps design, develop and supply materials aligned with worldwide trend traits.

AI-driven strategy

“It makes use of AI to analyse world trend traits, decode material compositions via picture and knowledge evaluation, and recreate related supplies by way of its analysis and manufacturing community throughout India and Asia,” the startup mentioned. 

“What we’re constructing is a system that understands the connection between inputs, be it fibres, chemical substances, processes and outputs like softness, sturdiness or texture. Over time, if I desire a particular material end result, I ought to be capable to get the precise recipe,” mentioned Narahari Payala, Co-founder and CEO, STCH.

The startup can be growing what it calls a “material GPT”, a system skilled on massive datasets of textile formulations and outcomes, aimed toward decreasing analysis and improvement cycles and decreasing prices. 

Deal with provide chain 

“Most AI innovation in trend has targeted on the entrance finish which is design, discovery, personalisation. However the actual alternative lies deeper within the provide chain, the place manufacturing is centred in Asia. Material is probably the most crucial, but least optimised layer,” Payala added.

It is usually engaged on textile formulations that substitute petrochemical-based synthetics with biodegradable or recycled fibres with out compromising on efficiency.

“For example, we have now developed materials that really feel like polyester however are created from cotton. The thought is to take away the trade-off between sustainability and efficiency,” he mentioned.

Development plans

STCH mentioned it has already constructed an order ebook of over $15 million throughout the UK, Europe, the US and India.

Payala mentioned the startup in the end goals to change into a full-stack backend accomplice for trend manufacturers. 

“The demand aspect is evolving quickly, with shorter cycles and extra selection. The manufacturing ecosystem must match that velocity. Our aim is to deal with all the backend, from development identification to supply, whereas manufacturers concentrate on the entrance finish,” he mentioned. 

“India has the uncooked supplies, the mills, and now with STCH, the AI-native platform to change into a worldwide supply of sustainable textile innovation,” mentioned Mark Kahn, managing accomplice, Omnivore.