New Delhi, Oct. 12 -- Despite early excitement, India's fashion tech sector has yet to deliver meaningful scale or investor returns. Most start-ups remain at seed stage, struggling to move beyond experimentation with artificial intelligence (AI)-driven tools such as virtual try-ons, stylists and aggregators. A few players are showing promise by combining AI with commerce, but the market remains fragmented and capital-shy.

Investors see potential in AI-led discovery and personalization, yet question whether these innovations can overcome the supply chain, funding and scale challenges that have long plagued fashion start-ups in India.

Of the top 50 fashion tech start-ups in India, only one has reached a Series B funding round, one has bee...