Accel-backed B2B fashion supply chain startup Fashinza’s cofounder and CEO Pawan Gupta has quit to pursue opportunities in the AI space.

Speaking to Inc42, Gupta said his growing interest in AI and the rapid pace of innovation in the sector pushed him towards exploring a new venture.

“I was just excited about AI… Once I really understood the technology, I realised the next 20 years are going to be based on this. So, it was very hard for me to keep out of it,” Gupta said.

He added that Fashinza’s evolution into a manufacturing-heavy business also influenced his decision. “Fashinza is obviously far away from AI as we pivoted to a more operationally heavy and managed marketplace model, and now even have factories… It was going further and further away from software and AI,” he added.

Gupta said he is certain about building in the AI space but has not finalised anything concrete yet. Currently on a break, he said he is exploring areas such as healthcare, ecommerce enablement, logistics and marketing, and wants to build from India while potentially targeting global markets, especially the US. 

Meanwhile, Fashinza, in a statement, said Gupta’s move was driven by personal and professional interests rather than business-related issues. The development was first reported by Moneycontrol.

Fashinza cofounder and CEO Abhishek Sharma told Inc42 that Gupta became non-operational at the startup last year and officially stepped away in December 2025. 

He added that Gupta’s exit was not linked to Fashinza’s business performance. He said the startup turned operationally profitable towards the end of FY26 and is now focused on expanding its manufacturing business across Europe and India.

“The business in December became a little better as we achieved profitability and are planning to expand. But he (Gupta) wanted to pursue a new startup on the AI side,” Sharma said.

The CEO added that the transition also coincided with Fashinza’s shift from being a technology-led supply chain platform to a manufacturing-focused business over the past two years. Following the pivot, Sharma gradually took over the startup’s day-to-day operations.

Founded in 2020 by Sharma, Gupta and Jamil Ahmad, Fashinza is an AI-enabled, tech-driven B2B apparel manufacturing platform that connects fashion brands with manufacturers and suppliers, managing the entire production process from design to delivery. The startup counts Accel, Prosus Ventures and Elevation Capital among its backers.

Gupta’s departure marks the second founder-level exit at the startup. Earlier in 2024, Ahmad stepped down from his role as chief business officer after nearly four years to launch Marrfa, a cross-border investment platform focused on Dubai real estate.

Fashinza went through a difficult phase around 2023 as the broader global fashion and ecommerce market slowed down after the post-Covid boom. The startup was impacted by weak demand from global apparel brands, funding winter pressures and a slowdown in exports.

Fashinza’s Financial Snapshot

On the financial front, Sharma said Fashinza turned profitable in the last quarter of FY26, although it remained in the red for the overall fiscal year.

The startup reported a revenue of ₹185 Cr and a loss of ₹38 Cr in FY24. In FY25, its revenue rose to around ₹200 Cr while loss narrowed to ₹30 Cr. However, its revenue declined sharply to around ₹140 Cr in FY26 amid a broader market slowdown and US tariffs. Its loss, however, narrowed to under ₹10 Cr in FY26.

Sharma said that the startup has now diversified beyond the US market. While nearly 70% of Fashinza’s revenue came from the US in FY25, the revenue mix in FY26 shifted to roughly 40% each from the US and Europe, alongside a growing India business.

For FY27, Sharma said Fashinza is targeting a revenue of ₹250 Cr and aims to post a profitable year. He added that the startup currently has an estimated runway of around 36 months and does not plan to raise fresh equity capital at least for the next six months.

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