STCH Raises $7 Million to Build AI-Led Fabric R&D and Manufacturing Platform

AI startup STCH has secured $7 million (approximately ₹66 crore) in a Pre-Series A funding round led by Omnivore, with participation from Kae Capital and WVC, as it looks to transform fabric research and manufacturing using artificial intelligence.

Founded in 2025 by former Zetwerk executives Narahari Payala and Aseem Chitkara, STCH operates as a contract development and manufacturing (CDMO) platform tailored for fashion and textile businesses. The company is focused on addressing inefficiencies in fabric development, a process that traditionally relies heavily on trial and error.

The startup plans to use the newly raised capital to enhance its AI capabilities, expand its in-house fabric R&D lab, strengthen manufacturing partnerships, and scale operations across key markets.

STCH’s platform uses AI to analyze product images and descriptions to identify fabric composition used by global fashion brands. It then breaks down materials into parameters such as texture, weight, and finish, enabling manufacturers to recreate similar fabrics through local production networks.

By targeting the backend of the fashion supply chain—rather than consumer-facing design tools—STCH aims to streamline fabric innovation, reduce the number of iterations required in development, and accelerate time-to-market for brands.

The funding reflects growing investor interest in applying AI to traditional industries like textiles, where automation and data-driven processes can significantly improve efficiency, reduce costs, and enable scalable manufacturing solutions.

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