Bengaluru-based textile technology startup, STCH, raises $5.5 million in pre-Series A funding
AI-Powered Textile Startup STCH Raises $5.5M to Revolutionize Fabric Development
Bengaluru-based textile technology startup, STCH, has raised $5.5 million in a pre-Series A funding round led by Omnivore, with participation from Kae Capital and WVC.
The newly raised funds will be used to expand its AI stack, build a fabric R&D lab, deepen mill partnerships, and enter new markets such as the US and Spain.
The startup, founded in 2025 by former Zetwerk executives Narahari Payala and Aseem Chitkara, is attempting to modernise fabric development.
"Fabric development today is trial-and-error. One may need 20 iterations to get one output right," Payala said.
STCH operates as a contract development and manufacturing organisation (CDMO), working with global brands including Shein, Crocodile and Being Human. It helps design, develop and source fabrics aligned with international fashion trends.
AI-driven approach
"It uses AI to analyse global fashion trends, decode fabric compositions through image and data analysis, and recreate similar materials via its research and manufacturing network across India and Asia," the startup said.
"What we are building is a system that understands the relationship between inputs, be it fibres, chemicals, processes and outputs like softness, durability or texture. Over time, if I want a specific fabric outcome, I should be able to get the exact recipe," said Narahari Payala, Co-founder and CEO, STCH.
The startup is also developing what it calls a "fabric GPT", a system trained on large datasets of textile formulations and outcomes, aimed at reducing research and development cycles and lowering costs.
Focus on supply chain
"Most AI innovation in fashion has focused on the front end which is design, discovery, personalisation. But the real opportunity lies deeper in the supply chain, where manufacturing is centred in Asia. Fabric is the most critical, yet least optimised layer," Payala added.
It is also working on textile formulations that replace petrochemical-based synthetics with biodegradable or recycled fibres without compromising on performance.
"For instance, we have developed fabrics that feel like polyester but are made from cotton. The idea is to remove the trade-off between sustainability and performance," he said.
Growth plans
STCH said it has already built an order book of over $15 million across the UK, Europe, the US and India.
Payala said the startup ultimately aims to become a full-stack backend partner for fashion brands.
"The demand side is evolving rapidly, with shorter cycles and more variety. The manufacturing ecosystem needs to match that speed. Our goal is to handle the entire backend, from trend identification to delivery, while brands focus on the front end," he said.
"India has the raw materials, the mills, and now with STCH, the AI-native platform to become a global source of sustainable textile innovation," said Mark Kahn, managing partner, Omnivore.
