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Indian textile startup Stch raises $7m to grow AI-driven supply

Bengaluru textile startup Stch has raised US$7 million in a pre-series A round led by Omnivore, with Kae Capital and WVC.

The company said the fund will be used to expand its AI tools and partnership with mills and fashion brands.

Founded in 2025 by former Zetwerk executives Narahari Payala and Aseem Chitkara, Stch runs a contract development and manufacturing model for fabric research and production across India and other Asia.

The company said it has an order book above US$15 million from brands in the UK, Europe, and the US.

🔗 Source: YourStory

🧠 Food for thought

Implications, context, and why it matters.

STCH uses AI to recreate fabrics for production

  • STCH uses AI to reverse-engineer fabrics for manufacturing, rather than create consumer design tools.
  • The platform reads images and descriptions, then turns them into specs such as texture, weight, and finish. It recreates those materials with local manufacturers 1.
  • The approach cuts costs. One UK brand lowered sourcing costs by nearly 20% after using STCH to reproduce its fabrics in India instead of Turkey 1.
  • STCH does not own factories. It secures production capacity from partner facilities and manufactures through a network across India and Bangladesh 1.

AI gains in fashion often start inside factory operations

  • STCH fits a quieter AI trend in fashion, where value comes from factory and supply work instead of shopper tools like personalization software used by Nordstrom, a US department store chain 2.
  • The technology helps brands spread production across more countries, which matters as geopolitical risk keeps rising.
  • Its ability to recreate materials in new regions can reduce concentration risk in a brand’s manufacturing base 1.
  • The startup is also building an internal set of “fabric recipes,” a hard-to-copy edge based on proprietary data about fabric development and manufacturing knowledge 1.

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