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

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. 

In global garment production up to 40 per cent of items often remain unsold due to misaligned demand. 

Traditionally, brands have managed inventory risk through markdowns and bulk purchasing, leading to significant overproduction.

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. 

By shifting to shorter cycles, brands can minimise the volume of finished goods required from the outset. 

The company is founded 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.

Grover emphasises:

“While many fashiontech investments focus on expensive machinery, our experience in factory operations has given us a unique perspective.

It’s standard software — automating paperwork, tracking fabric, and using AI for production and capacity planning — that can actually reduce overheads and make small-batch production profitable for European factories, which already operate at high efficiency.” 

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.They enable brands to meet real-time demand and optimise costs for ultra-fast lead times.

MannyAI’s approach aligns with the EU’s policy momentum to address overproduction and overconsumption in fashion. 

Significantly, unlike traditional on-demand manufacturing, MannyAI’s business model is designed to empower existing factories without the need for capital-intensive equipment.

Dreamcraft Ventures led the funding with participation from Alante Capital, Plug and Play EMEA, Carbon13, Ventures Together, and sourcing giant PDS Ventures.

According to Mathilde Lyet, Principal at Dreamcraft, increasing regulatory pressures and a shift toward nearshoring, means this innovation is well-timed to help brands reduce waste and improve profitability in a rapidly evolving industry.”

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.

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.

Lead image: MannyAI. Photo: uncredited.