Suditi Industries plans to raise US $6.57 million to accelerate its expansion into India’s fast-growing kidswear market, strengthening retail and manufacturing presence.
Suditi Industries Limited, a prominent player in India’s textile and apparel ecosystem, is set to raise Rs. 58.87 crore (US $ 6.57 million) through a mix of equity shares and warrants, marking a key step in its transformation from a traditional textile manufacturer into what it positions as India’s first vertically integrated children’s retail business.
The capital raise is intended to fund the expansion of Gini & Jony as Suditi targets the fast-growing children’s apparel and lifestyle segment. India’s kidswear market alone is estimated at Rs. 3,00,000 crore (US $ 33.5 billion) and is growing at a robust compound annual growth rate of 14–15%, making it one of the most attractive consumer categories in the country.
Pawan Agarwal, Chairman and Managing Director of Suditi Industries, said the Indian kidswear market represents a rare, once-in-a-generation opportunity. He added that the fresh capital, along with the experience and strategic depth of incoming investors, would enable the company to accelerate growth while remaining focused on its long-term vision.
The investor group includes Venkat Ramaswamy, co-founder of Edelweiss; Nitin Agarwal, former chief executive of GlobalBees; Naresh Biyani, founder of Capwise Financial Services; and Rajesh Palviya, among others. Existing backers include Nikhil Vora, a leading consumer-focused investor; Sushant Goel, co-founder of Third Wave Coffee; and Vikrant Mudaliar, Chief Marketing Officer at Dream Sports.
Harsh Agarwal, Chief Executive Officer of Gini & Jony, said the company was fortunate to have seasoned operators and founders as investors and advisors who had scaled businesses in similar areas. He noted that their collective experience would help shorten learning cycles, improve execution at scale and institutionalize governance frameworks appropriate for a market leader.
Suditi Industries currently carries negligible debt and has reported strong financial momentum. The company recorded 89% growth in turnover in the second quarter of FY ’24, followed by a 1,900% increase in net profit in the second quarter of FY ’25, highlighting the impact of its operating model and turnaround strategy.
The newly raised funds will be deployed to speed up retail expansion, strengthen digital and omnichannel capabilities, broaden product categories and build scalable backend infrastructure, while maintaining disciplined capital allocation and consistent earnings quality.
News Courtesy : Apparel resources