Surat-based B2B textile manufacturing startup Fantail has made a major stride by raising Rs 13.75 crore (around $1.6 million) in a Seed funding round. Riverwalk Holdings, Incubate Fund Asia, and All In Capital led this round, recognizing the startup’s potential to reshape Surat’s textile sector. Fantail plans to use the funding to invest directly in its partner small and medium-sized enterprises (SMEs), helping them modernize operations and improve large-scale production efficiency.
Fantail’s vision rests on transforming Surat’s manufacturing landscape by strengthening its traditional weaving, milling, and processing ecosystem. The startup takes a structured, end-to-end approach that integrates all stages of production—from sourcing yarn to delivering finished garments.
Fantail’s Journey and Vision
Ramya Iyer founded Fantail in 2023 with a clear mission: to modernize and unify Surat’s textile supply chain. Iyer brings more than a decade of experience working within the city’s vast textile industry. During this time, she witnessed both the strengths and inefficiencies of the ecosystem. Her knowledge of Surat’s production network inspired her to build a company that connects weavers, mills, and processors under a single, coordinated platform.
Iyer emphasizes that timing plays a crucial role in B2B manufacturing. “In B2B, timing is of great significance. I have personally worked with the Surat ecosystem for a decade, and in the coming years, we will see a lot of action in manufacturing 2.0 here,” she said. Fantail positions itself as a key enabler of this new phase in Surat’s industrial growth.
How Fantail Integrates End-to-End Manufacturing
Fantail sets itself apart by directly collaborating with weavers, mills, and processing units. The startup manages the entire production chain instead of relying on fragmented suppliers. This model allows Fantail to oversee every stage, starting from yarn procurement, weaving, and dyeing, to stitching and packaging the final garments.
By streamlining the entire process, Fantail ensures faster turnaround times for its B2B clients. The company controls quality checks at multiple stages, preventing defects from moving forward in the chain. As a result, clients benefit from improved consistency in the finished products.
Fantail’s approach also reduces capital inefficiencies. Traditional textile manufacturers in Surat often face cash flow bottlenecks due to scattered operations and communication gaps. Fantail bridges these gaps by offering one-stop solutions that improve coordination and reduce unnecessary costs.
Funding to Empower Surat’s SMEs
Fantail plans to use the Rs 13.75 crore funding to strengthen its SME network. The startup will support partner units across Surat by helping them upgrade their machinery, adopt better processes, and scale production capacity. Many SMEs in Surat struggle with outdated equipment and inefficient workflows, which limit their ability to compete in larger markets. Fantail’s investments aim to reverse this trend.
The funding will also help Fantail introduce new technologies and digital tools that track production timelines, inventory levels, and quality standards. These improvements will benefit both SMEs and their downstream B2B customers.
Riverwalk Holdings, Incubate Fund Asia, and All In Capital expressed strong confidence in Fantail’s vision. These investors see value in backing a company that not only builds its own business but also uplifts an entire ecosystem.
Surat’s Position in India’s Textile Industry
Surat stands as one of India’s largest textile hubs. The city accounts for a significant portion of India’s synthetic fabric production and employs thousands of workers across its weaving, dyeing, and processing units. However, the industry faces growing challenges, including rising global competition, demand for higher-quality products, and the need for sustainable practices.
Fantail addresses these challenges head-on by building a cohesive supply chain. The company aims to make Surat’s manufacturing sector more responsive to modern B2B buyers who demand speed, reliability, and consistency.
By investing in partner SMEs, Fantail helps create a manufacturing ecosystem capable of competing on a national and global level. This approach ensures that growth in the sector benefits a wide network of producers rather than a few large players.
Manufacturing 2.0: What Fantail Wants to Build
Fantail’s Manufacturing 2.0 vision revolves around three pillars: efficiency, quality, and scalability. The startup wants to help its partner units shift from manual, fragmented operations to digital, streamlined production.
Efficiency improvements come from better coordination between all stages of manufacturing. Fantail uses digital tracking tools to monitor progress and flag issues early. This system reduces delays and rework, improving delivery timelines.
The startup also focuses on quality control. It places quality checkpoints throughout the supply chain rather than limiting checks to the end of production. This method catches defects early and reduces waste.
Finally, Fantail works on scalability. It supports SMEs in expanding their capacity to handle larger orders without compromising quality. The company helps partner units access modern equipment and advanced techniques that allow them to take on high-volume production.
Investor Confidence Reflects Fantail’s Strong Foundation
Fantail’s first institutional funding round reflects strong investor belief in its business model and leadership. Riverwalk Holdings, Incubate Fund Asia, and All In Capital chose to back Fantail because they see the opportunity to build a platform that transforms an entire industry.
These investors understand the potential of Surat’s manufacturing ecosystem and trust Fantail’s ability to bring long-term value to the sector. Fantail’s deep relationships with local manufacturers, combined with its modern operational approach, position it well for growth.
Future Plans: Scaling Impact Beyond Surat
While Fantail currently focuses on Surat’s textile sector, the startup holds ambitions for broader impact. Ramya Iyer and her team plan to expand their model to other textile hubs in India once they solidify operations in Surat. The company also aims to explore sustainable manufacturing practices, including water conservation, chemical management, and waste reduction.
Fantail will continue to invest in digital solutions that help both the company and its partners. These solutions will give B2B clients real-time visibility into their orders, helping them plan better and reduce inventory risks.
Conclusion
Fantail’s Rs 13.75 crore Seed funding marks an important step in its mission to modernize and unify Surat’s textile manufacturing sector. The startup combines deep local knowledge with a fresh, structured approach to production. By investing in partner SMEs, introducing digital tools, and emphasizing quality and efficiency, Fantail creates a manufacturing model ready for the next generation.
As Fantail executes its Manufacturing 2.0 vision, it sets an example for how startups can drive change across traditional industries. With strong investor backing and a clear roadmap, Fantail appears well on its way to becoming a key player in India’s textile future.
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