CapGrid, a B2B cloud manufacturing startup for precision parts and components, has raised $7 million in a Series A funding round led by Nexus Venture Partners, according to ETtech report.
Existing investors Anicut Capital and Axilor Ventures, which was founded by Infosys co-founders Kris Gopalakrishnan and SD Shibulal, also participated in the current funding round. Earlier, the startup had raised Rs 4.1 crore in November 2021 in its seed funding round from Anicut, Axilor and Firstcheque.
CapGrid said it is currently getting over 5,000 different precision components manufactured through its supplier network of more than 300 partners. CapGrid’s AI-powered platform and network of suppliers allows manufacturers to reduce the complexities in the direct material sourcing and procurement process.
CapGrid’s co-founders Dheeraj Tiwari and Himanshu Singh Raghuvanshi said that the company, which primarily serves original equipment manufacturers (OEMs) and tier-1 suppliers in the automotive sector, will utilise the funds to expand its team, scale up its warehouse presence across major automotive zones and add to its cloud manufacturing capacity.
“Primarily, we are targeting three things. A decent amount will go into building our team. We recently expanded from 24 people to around 45 people. We will also invest in our MSME partners—to increase the utilisation levels of our 25 most hungry suppliers,” Tiwari, who is the company’s chief executive, said.
Adding to that, Raghuvanshi, who is CapGrid’s COO, said: “We have warehouse presence in six cities. There are 12-15 important manufacturing zones in India. As our pipeline grows, our aim is to grow into all of these 12-15 key zones over the next year”.
Currently, the company has warehouses in Hosur, Pune, Rajkot, Jaipur, Faridabad and Roorkee. It plans to open warehouses in Manesar and Chennai within the next three months, Tiwari said.
In a statement, the company said that CapGrid partners with warehousing and logistics players in an asset light model.
“They (CapGrid) are already working with leading OEMs on strategic initiatives like indigenisation, light-weighting, EV transition, procurement consolidation and value engineering,” said Sameer Brij Verma, managing director of Nexus Venture Partners.
“We see India being a global leader in manufacturing in the years ahead and feel CapGrid will increasingly be a partner of choice for OEMs looking to build high quality and agile supply chains while improving margins and OTIF (on-time in-full) significantly,” he added. OTIF refers to a supplier’s ability to fulfil delivery commitments.
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