Groyyo Buys Majority Stake In Oussum To Strengthen Presence In US

B2B manufacturing and supply chain enablement startup Groyyo has acquired a majority stake in New York-based online women’s wear company Oussum Inc to strengthen its presence in the US B2B fashion retail market.

However, the startup neither disclosed the amount of stake it has acquired nor the value of the transaction.

In a statement, Groyyo said it will work closely with Oussum to scale the latter’s private labels across online and offline channels in the US.

The startup added that its capabilities to provide sample-to-finished products with a turn around time of 30 days will help the US based fashion retailer gain edge in the fashion retail industry.

Founded in 2021 by Subin Mitra, Pratik Tiwari, and Ridam Upadhyay, Groyyo helps micro, small and medium enterprises (MSMEs) in apparel and textile industry meet global demand and improve their capacity utilisation. It also helps the SMEs in the fashion and lifestyle industries digitise their processes, including inventory management.

The startup claims to serve more than 360 factories and 110 brands.

On the other hand, Oussum is a women’s wear fashion retail brand in the US which also has a private label brand called Gypsie Blu.

Groyyo’s US Focus: The startup said it has strengthened its warehousing network in the US and would leverage it to serve the fashion retail market in the US.

This, coupled with its vast sourcing capabilities in South Asia, will help the Tiger Global-backed startup serve fast fashion clients in the US, it added.

“With the emergence and dominance of fast fashion across the US, we believe the timing is better than ever before for us to go deeper and offer an end-to-end shelf to warehouse offering to customers across the US,” Groyyo CEO and cofounder Subin Mitra said.

The startup is looking to capitalise on the burgeoning US fashion retail market, which is projected to become a $303 Bn opportunity by 2029, clocking a 16% CAGR.

Last year, Groyyo strengthened its leadership by onboarding Smita Verma Kansal as chief business officer for driving up its exports to the US. It also elevated Nitin Jain as cofounder in December to expand its presence in international markets such as the UK, the EU, Australia, and South Korea.

A Look At Groyyo’s Financials: The development comes a couple of months after Inc42 reported that the startup was in talks with investors, including Tiger Global, to raise $40 Mn (about INR 342 Cr).

Overall, the startup has raised a total funding of about $50 Mn to date.

As per filings accessed from Tofler, the startup’s revenue from US exports zoomed 65% to INR 62 Cr in the financial year 2023-24 (FY24) from INR 37.50 Cr in the preceding year.

Overall, its revenue from operations declined to INR 403 Cr in FY24 from INR 474 Cr in the previous year, while net loss narrowed 3% to INR 64 Cr from INR 67 Cr in FY23.

In January, sources told Inc42 that the startup achieved EBITDA profitability at the end of 2024 and was on track to post an operating revenue of INR 480 Cr in the ongoing fiscal year.