MannyAI Raises €1.5 M to reduce overproduction in the fashion industry

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€1.5 million funding round, including a €240,000 IUK grant and a €1.26 million Pre-Seed investment led by Dreamcraft Ventures. \r\nIn global garment production up to 40 per cent of items often remain unsold due to misaligned demand. \r\nTraditionally, brands have managed inventory risk through markdowns and bulk purchasing, leading to significant overproduction.\r\n MannyAI offers an innovative alternative: a test-and-reorder model that enables brands and…","articleSection":"Fashiontech","articleBody":"Fashiontech startup MannyAI has raised a €1.5 million funding round, including a €240,000 IUK grant and a €1.26 million Pre-Seed investment led by Dreamcraft Ventures. \r\nIn global garment production up to 40 per cent of items often remain unsold due to misaligned demand. \r\nTraditionally, brands have managed inventory risk through markdowns and bulk purchasing, leading to significant overproduction.\r\n MannyAI offers an innovative alternative: a test-and-reorder model that enables brands and…","wordCount":405,"timeRequired":"PT3M","author":{"@type":"Person","name":"Cate Lawrence"},"publisher":{"@type":"Organization","name":"Tech.eu","logo":{"@type":"ImageObject","url":"https:\/\/cdn.tech.eu\/uploads\/2022\/10\/techeu_logo_light.png","width":220,"height":55}},"thumbnailUrl":"https:\/\/cdn.tech.eu\/uploads\/2024\/11\/download-6-151.jpg","image":{"@type":"ImageObject","url":"https:\/\/cdn.tech.eu\/uploads\/2024\/11\/download-6-151.jpg","width":1280,"height":720}}</script> <script> window.lazySizesConfig = window.lazySizesConfig || {}; if (navigator.onLine !== true) { window.lazySizesConfig.init = false; } </script> <script async src="/v8/js/libs/jquery.lazy.min.js"></script>  <script src="https://cdn.usefathom.com/script.js" data-site="LMPGNQZQ" defer></script>  </head> <body class="light post-single postid-54805">  <noscript><iframe src="https://www.googletagmanager.com/ns.html?id=GTM-TLK3423" height="0" width="0" 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data-content="https://tech.eu/2024/11/21/mannyai-raises-eur15-m-to-reduce-over-production-in-the-fashion-industry/" title="Copy link">Copy link</a> </div> </div> </div> </div> </div> </div> <div class="col-12 col-md-8">  <div class="single-post-content"> <p><span data-preserver-spaces="true">Fashiontech</span><span data-preserver-spaces="true"> startup</span><strong> </strong><a href="https://www.manny-ai.com/" target="_blank"><span data-preserver-spaces="true">MannyAI</span></a><span data-preserver-spaces="true"> has raised a €1.5 million funding round, including a €240,000 IUK grant and a €1.26 million Pre-Seed investment led by Dreamcraft Ventures. </span></p> <p><span data-preserver-spaces="true">In global garment production up to 40 </span><span data-preserver-spaces="true">per cent</span><span data-preserver-spaces="true"> of items </span><span data-preserver-spaces="true">often</span> <span data-preserver-spaces="true">remain unsold</span><span data-preserver-spaces="true"> due to misaligned demand.</span><span data-preserver-spaces="true"> </span></p> <p><span data-preserver-spaces="true">Traditionally, brands have managed inventory risk through markdowns and bulk purchasing, leading to significant overproduction.</span></p> <p><span data-preserver-spaces="true"> MannyAI offers an innovative alternative: a test-and-reorder model that enables brands and their trusted suppliers to collaborate seamlessly using advanced AI for short, responsive order cycles. </span></p> <p><span data-preserver-spaces="true">By shifting to shorter cycles, brands can minimise the volume of finished goods required from the outset. </span></p> <p><span data-preserver-spaces="true">The company </span><span data-preserver-spaces="true">is</span><span data-preserver-spaces="true"> founded</span><span data-preserver-spaces="true"> by ex-manufacturer turned tech entrepreneur Shruti Grover and data scientist Simon Johnson. In her early twenties, Grover gained hands-on experience by establishing and operating temporary factories on construction sites across India, producing structural stone and building facades. She went on to set up a cutting-edge manufacturing facility in Noida, Uttar Pradesh, equipped with advanced water-jet cutters and 5-axis CNC machines.</span></p> <p><span data-preserver-spaces="true">Grover emphasises:</span></p> <blockquote> <p><span data-preserver-spaces="true">“While many </span><span data-preserver-spaces="true">fashiontech</span><span data-preserver-spaces="true"> investments focus on expensive machinery, our experience in factory operations has given us a unique perspective. </span></p> <p><span data-preserver-spaces="true">It’s</span><span data-preserver-spaces="true"> standard software — automating paperwork, tracking fabric, and using AI for production and capacity planning — </span><span data-preserver-spaces="true">that can </span><span data-preserver-spaces="true">actually</span><span data-preserver-spaces="true"> reduce overheads and make small-batch production profitable for European factories, which already operate at high efficiency.”</span><span data-preserver-spaces="true"> </span></p> </blockquote> <p><span data-preserver-spaces="true">MannyAI’s initial offerings include AI-powered tools for cost negotiation, real-time order allocation, and dynamic capacity management tailored to each factory’s capabilities</span><span data-preserver-spaces="true">.They</span><span data-preserver-spaces="true"> enable brands to meet real-time demand and optimise costs for ultra-fast lead times.</span></p> <p><span data-preserver-spaces="true">MannyAI’s approach aligns with the EU’s policy momentum to address overproduction and overconsumption in fashion. </span></p> <p><span data-preserver-spaces="true">Significantly, unlike traditional on-demand manufacturing, MannyAI’s business model is designed to empower existing factories without </span><span data-preserver-spaces="true">the need for</span><span data-preserver-spaces="true"> capital-intensive equipment.</span></p> <p><a href="https://tech.eu/2024/06/03/dreamcraft-ventures-launches-66m-fund-for-saas-and-fintech/" target="_blank"><span data-preserver-spaces="true">Dreamcraft Ventures</span></a><span data-preserver-spaces="true"> led the funding with participation from Alante Capital, Plug and Play EMEA, </span><a href="https://tech.eu/2024/05/16/carbon13-invests-in-6-climatetech-startups-through-its-venture-launchpad/" target="_blank"><span data-preserver-spaces="true">Carbon13</span></a><span data-preserver-spaces="true">, Ventures Together, and sourcing giant PDS Ventures.</span></p> <p><span data-preserver-spaces="true">According to Mathilde Lyet, Principal at Dreamcraft, increasing regulatory pressures and a shift toward </span><span data-preserver-spaces="true">nearshoring,</span><span data-preserver-spaces="true"> means this innovation is well-timed to help brands reduce waste and improve profitability in a rapidly evolving industry.”</span></p> <p><span data-preserver-spaces="true">With three factories across Europe currently testing MannyAI’s technology, the company is rapidly operationalising its model for real-world applications in the apparel and footwear industry.</span></p> <p><span data-preserver-spaces="true">The funds will enable MannyAI to transform traditional factories into agile, AI-driven production hubs, supporting brands in reducing their total production volumes while making small-batch production profitable.</span></p> <p><em>Lead image: MannyAI. 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MannyAI Raises €1.5 M to reduce overproduction in the fashion industry - Tech.eu