Fashinza Co-founder Pawan Gupta Launches AI Startup

Pawan Gupta Exits Fashinza to Explore AI Opportunities

Pawan Gupta, co-founder and CEO of the Accel-backed B2B fashion supply chain startup Fashinza, has departed the company to embark on a new venture focused on the artificial intelligence (AI) sector. Gupta cited a growing personal interest in AI and the rapid pace of innovation in the field as primary drivers for his decision, indicating a desire to be at the forefront of technological advancements that he believes will shape the next two decades.

Gupta explained that Fashinza’s strategic pivot towards a more operationally intensive and managed marketplace model, including the establishment of its own factories, moved the company further away from its software and AI roots. This evolution, he stated, made it increasingly challenging for him to remain deeply involved in the AI domain while leading Fashinza. While he is certain about building in the AI space, Gupta is currently on a break, exploring potential applications in sectors such as healthcare, e-commerce enablement, logistics, and marketing, with an ambition to build from India and target global markets, particularly the United States.

Fashinza Confirms Founder’s Departure and Future Outlook

Fashinza, in a statement, confirmed that Gupta’s exit was driven by his personal and professional aspirations rather than any business-related issues. Co-founder Abhishek Sharma clarified that Gupta became non-operational at the startup in the latter half of the previous year and officially stepped away in December 2025. Sharma emphasized that Gupta’s departure was not linked to Fashinza’s business performance, noting that the startup achieved operational profitability towards the end of FY26.

Sharma further elaborated that the transition coincided with Fashinza’s strategic shift over the past two years, moving from a technology-led supply chain platform to a manufacturing-focused business. As this pivot progressed, Sharma gradually assumed responsibility for the startup’s day-to-day operations. Fashinza is now focused on expanding its manufacturing operations across Europe and India, aiming for continued growth and market penetration in these key regions.

Founder Exits and Strategic Pivot at Fashinza

Gupta’s departure marks the second founder-level exit from Fashinza since its inception. Previously, in 2024, co-founder Jamil Ahmad stepped down from his role as chief business officer after nearly four years to launch Marrfa, a cross-border investment platform concentrating on Dubai real estate. Founded in 2020 by Sharma, Gupta, and Ahmad, Fashinza was initially established as an AI-enabled, tech-driven B2B apparel manufacturing platform connecting fashion brands with manufacturers and suppliers, overseeing the entire production lifecycle from design to delivery. The company has received backing from investors including Accel, Prosus Ventures, and Elevation Capital.

The startup faced a challenging period around 2023, mirroring a broader slowdown in the global fashion and e-commerce markets following the post-COVID boom. Fashinza experienced impacts from weakened demand from international apparel brands, the prevailing funding winter, and a general slowdown in exports, which necessitated strategic adjustments and a focus on operational efficiency.

Fashinza’s Financial Performance and Market Diversification

Financially, Fashinza achieved profitability in the final quarter of FY26, although it remained in the red for the entire fiscal year. The company reported a revenue of ₹185 crore with a loss of ₹38 crore in FY24. In FY25, revenue increased to approximately ₹200 crore, while the loss narrowed to ₹30 crore. However, FY26 saw a significant revenue decline to around ₹140 crore, attributed to the prevailing market slowdown and U.S. tariffs, though its loss substantially narrowed to under ₹10 crore for the fiscal year.

Sharma highlighted Fashinza’s successful diversification beyond the U.S. market. While the U.S. accounted for nearly 70% of Fashinza’s revenue in FY25, the revenue mix in FY26 shifted to approximately 40% each from the U.S. and Europe, complemented by a growing business presence in India. Looking ahead to FY27, Fashinza is targeting a revenue of ₹250 crore and anticipates a profitable year. The startup currently possesses an estimated runway of around 36 months and has no immediate plans to raise fresh equity capital for at least the next six months, indicating a focus on sustainable growth and operational self-sufficiency.