New Delhi, 30 January 2023: CapGrid, a cloud-based manufacturing start-up for precision parts and components, announced that it raised $7 million in a recent funding round led by Nexus Venture Partners. The round also included participation from current investors Axilor and Anicut Capital, as well as angel investor Deepak Jain, senior Partner at Bain and head of the automotive practice in India.
The start-up is building a digital supply network using advanced technology and partnering with numerous Tier 2 manufacturers to source, produce, and deliver precision parts and components to customer assembly lines. By leveraging the available capacity of QC-certified Tier 2 suppliers, CapGrid is able to act as a cloud manufacturer and a single source supplier for Automotive and EV OEMs and Tier 1s.
To serve manufacturers nationwide, CapGrid collaborates with logistics companies in an asset-light model for seamless delivery. The start-up has a diverse customer base of leading players in the automotive and manufacturing industries and offers services such as procurement consolidation, NPD (New Product Development), SPD (Spare Parts) sourcing, and Electric Vehicle component sourcing. CapGrid has reduced supply chain complexity by 90%, procurement cost to zero, and material cost by 3-5% for its customers. Currently, it manages over 5,000 different precision components through a network of 300+ suppliers, ensuring seamless delivery and quality control. The global market for this segment in the automotive industry is worth over $1,000 billion. The newly acquired funds will be used to enhance technology infrastructure, talent acquisition, and scale up cloud manufacturing with supply partners.
Speaking on the funding round, Cofounder & CEO, Dheeraj says “We have digitalized the entire Source-to-Deliver process. CapGrid is working closely with multiple automotive and industrial manufacturers as a strategic partner for the supply of precision parts & components. Our technology stack and supplier aggregation capability helps customers reduce operational complexity and focus on innovation. With our decentralized global supply network, we can cater to direct material needs to OEMs and Tier 1s across the globe.”
Himanshu, Cofounder and COO, who closely works with the supplier ecosystem says, “CapGrid has illuminated manufacturing capabilities of 30,000+ suppliers across 15 countries and identified thousands of suppliers operating at 50-60% capacity. We allow them to focus, utilize and innovate on their core manufacturing capabilities by bringing aggregated manufacturing demand.”
Sameer Brij Verma, Managing Director at Nexus Venture Partners, expressed that “We at Nexus are very excited about partnering with CapGrid as they revolutionise precision components sourcing and procurement for the automotive manufacturing sector via their robust network of cloud manufacturers. They are already working with leading OEMs on strategic initiatives like indigenisation, light-weighting, EV transition, procurement consolidation and value engineering. 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 chain while improving margins and OTIF significantly.”
Vyom Agarwal, Sr. Vice President at ACE (Action Construction Equipment ltd.), says that “There is a need to reduce the operational complexity of automotive and industrial manufacturing. We have engaged CapGrid as a single window in place of a cluster of suppliers mainly in hardware category to reduce our inventory, consolidate our buying and bring down supply chain complexity”
Intequant advisors acted as exclusive Financial advisors while JSA Law and Sarvaank Associates was legal and secretarial advisor.