MannyAI plans to use proceeds from the funding to transform traditional fashion manufacturing facilities into agile, AI-enhanced production centres. The goal is to assist brands in decreasing their overall production volumes while making small-batch manufacturing more financially viable.
MannyAI's AI technology platform is designed to facilitate better collaboration between fashion brands and factories for rapid, low-volume production and ultimately reduce the need for large-scale manufacturing.
“The shift to agile supply chains is already underway, as brands face pressure to manage excessive inventory,” says Shruti Grover, MannyAI CEO and co-founder.
MannyAI CTO and co-founder Simon Johnson added: "Our AI-powered tools for production planning and cost negotiation foster transparent and collaborative relationships between buyers and suppliers, enabling brands to respond effectively to real-time demand while optimising costs for rapid lead times."
The company’s strategy aligns with the European Union's initiatives aimed at tackling issues related to overproduction and overconsumption in the fashion industry. It empowers existing factories without necessitating significant investments in new equipment.
MannyAI’s solution fosters collaboration between brands and their suppliers using advanced AI technologies for shorter order cycles. By adopting this approach, brands can reduce the initial volume of finished goods required.
Initial offerings from the company include AI-driven tools for cost negotiation, real-time order allocation, and dynamic capacity management tailored to the capabilities of individual factories.
MannyAI founders tested their model through a micro-factory located in South London while collaborating with various brands including Good Squish, Phoebe English, LRD, and Avie Studio.
With global garment production estimated at 80bn to 150bn items annually, it is reported that up to 40% of these items often go unsold due to demand mismatches.
Traditionally, brands have addressed inventory risks through markdowns and bulk purchasing strategies, leading to significant overproduction issues.
This transition is increasingly important as consumer demand fluctuates due to unpredictable climate changes and fast-evolving social media trends.
The funding includes a €240,000 grant from Innovate UK and a pre-seed investment of €1.26m led by Dreamcraft Ventures. Other investors include Alante Capital, Plug and Play EMEA, Carbon13, Ventures Together, and PDS Ventures.
PDS VENTURES VC Investments head Ankur Agarwal said: “We believe MannyAI's innovative approach to small-batch production is a game-changer for the industry. Its AI-driven tools enable brands and factories to respond swiftly to real-time demand, helping to prevent excess inventory and meet today’s market need for viable test-and-repeat and rapid replenishment production."
“MannyAI's digital twin-powered AI platform offers a much-needed solution, enabling just-in-time production and optimising factory schedules. With increasing regulatory pressures and a shift toward nearshoring, this innovation is well-timed to help brands reduce waste and improve profitability in a rapidly evolving industry," said Mathilde Lyet, principal, Dreamcraft.
