Fashion Technology Startup Thread Factory Raises Rs 1.5 Crore in Pre-Seed Round Led by AJVC

India’s fashion industry has long operated on informal networks – phone calls, WhatsApp messages, and personal contacts forming the backbone of a vast apparel supply chain. Thread Factory, a B2B apparel platform, is working to change that, and investors are taking notice.

The startup has successfully closed a Rs 1.5 crore pre-seed funding round led by Aviral Bhatnagar at AJVC. The capital infusion marks a significant early vote of confidence in the company’s vision to bring structure, data, and technology to one of India’s most fragmented industries.

The Problem Thread Factory Is Solving

Independent clothing retailers across India have historically faced considerable challenges when sourcing products from manufacturers. The process is largely unorganised, relying on informal communication channels that offer little visibility into demand patterns or inventory planning. This results in inefficient purchasing decisions, excess stock, and missed market opportunities on both sides of the supply chain.

Thread Factory addresses this gap by offering a digital platform where retailers can browse designs and place orders directly, while manufacturers gain access to demand data that enables smarter production planning. The outcome is a more efficient, transparent, and responsive supply ecosystem.

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Early Traction and Market Validation

Founded in 2023 by Vivek Solanki and Paras Jindal, Thread Factory has moved swiftly from concept to measurable commercial traction. The company currently reports approximately Rs 4 crore in annual recurring revenue — a notable milestone for a pre-seed stage venture. Equally encouraging is its 60 per cent monthly repeat purchase rate, which reflects genuine utility and growing trust among its user base.

The platform has also onboarded more than 40 manufacturers, laying the foundation for a robust and scalable supply network across India’s apparel sector.

What Comes Next

The freshly raised capital will be deployed across four key areas: strengthening the platform’s technology infrastructure, expanding the core team, broadening the retailer and manufacturer network, and building a data driven supply intelligence layer that can anticipate demand and reduce waste across the value chain.

For an industry where decisions have traditionally been made on instinct and informal relationships, Thread Factory’s approach — grounded in data and digital infrastructure — represents a meaningful shift. If the early numbers are any indication, the market appears ready for exactly this kind of transformation.

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