Synopsis
STCH is revolutionizing fabric development with AI. The company helps fashion brands design and source materials efficiently. This platform aims to reduce trial-and-error in fabric creation. STCH is building a 'fabric GPT' for faster R&D. They are also focusing on sustainable textile alternatives.Listen to this article in summarized format
The startup works with the likes of Shein, Crocodile and Being Human, helping them design, develop and source fabrics aligned with global trends. STCH, which has raised $5.5 million in a funding round led by Omnivore, with participation from Kae Capital and WVC, said it is attempting to bring predictability to a largely fragmented and manual process.
STCH said it uses AI to scan global fashion trends, decode fabric compositions through image and data analysis, and recreate similar materials through its R&D and manufacturing network across India and Asia. It then matches demand with manufacturing capacity to enable faster production cycles.
“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,” Payala tells ET.
Founded by former Zetwerk executives Payala and Aseem Chitkara, the company has already built an order book of over $15 million across the UK, Europe, the US and India.
“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.
STCH 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,” Payala said.
He added that customer demand is diverging across segments. “Fast fashion players want speed; they may ask us to recreate 100 styles and launch within weeks. Traditional brands are more focused on getting the product right in terms of quality and brand DNA,” he said.
The company is also building what it calls a “fabric GPT” -a system trained on large datasets of textile recipes and outcomes. “This can drastically reduce the R&D lifecycle. Instead of multiple iterations, you can arrive at the right fabric much faster and at lower cost,” Payala said.
The cofounder said the broader opportunity is in becoming 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.
Mark Kahn, managing partner at Omnivore, said the founders bring a strong mix of materials science and supply chain expertise. “India has the raw materials, the mills, and now with STCH, the AI-native platform to become a global source of sustainable textile innovation.”
STCH plans to use the fresh capital to invest in its AI stack, build a fabric R&D lab, expand mill partnerships, and enter new markets such as the US and Spain.
