Manufacturing Startup CapGrid Solutions Raises $5 Mn In New Round

Nexus Venture Partners-backed CapGrid Solutions, a business-to-business (B2B) manufacturing startup has raised $5 million (around Rs 45 crore) in a funding round led by Anicut Growth Fund.

Existing investors Nexus Venture Partners and Axilor Ventures participated in the funding round, along with auto industry veterans Sunjay Kapur and Vivek Vikram Singh, the chairperson and managing director of Sona Comstar.

The funds will support global expansion and technology upgrades to enhance supply chain and operations.

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Dheeraj Tiwari, founder and chief executive CapGrid, said, “We have already started global exports. Until now, we were only focused on India. Now that our supply chain for manufacturing components is set up, we have started exploring global business. We are focusing on two to three geographies, such as the US and Germany, adding the company is aiming for its global business to contribute 30% to its overall revenue in the next 12 months."

Dhruv Kapoor, chief executive, Anicut Growth Fund, said, “CapGrid's cloud competent manufacturing brings granularity and visibility to inefficient supply chains in automotive and consumer durable sectors. CapGrid's solution is much needed to streamline inefficiencies as India transitions towards a manufacturing led economy.”

“We have added one of the top two to three AC manufacturers, one of the top three fan manufacturers, and appliances manufacturers over the last 12 months. This is another way to diversify risk. Secondly, with the same set of suppliers, I am now able to cater to another industry as well," he added.

"As CapGrid builds competencies in working with supply chains from different industries they are in a great position to become the purchase organisation for companies in India as well as across the globe," Sona Comstar’s Kapur said.

In January 2023, CapGrid raised $7 million in January 2023 in a funding round led by Nexus Venture Partners.

About CapGrid Solutions

Founded in 2020 by Tiwari and Himanshu Singh Raghuvanshi, the Gurugram-based CapGrid helps automotive OEMs and tier-1 suppliers with direct material sourcing and procurement. It connects them with partnered suppliers for precision parts and components.

CapGrid, which started in the automotive sector, has now expanded into consumer durables, which make up nearly half of its revenue.

The company operates 11 fulfillment centers and works with 50 strategic manufacturing partners.

Last year, CapGrid earned around Rs 99 crore in revenue and aims to reach Rs 220 crore in FY25. It also plans to become profitable next year.

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