B2B cloud manufacturing start-up CapGrid announced on Monday that it has raised $7 million in its latest funding round, led by Nexus Venture Partners. The round also saw participation from existing investors Axilor and Anicut Capital. Deepak Jain, a senior Partner at Bain and head of the automotive practice in India, also participated as angel investor in the round.
According to CapGrid, it is building a digital supply network with advanced technology infrastructure, partnering with hundreds of Tier 2 manufacturers to source, manufacture, and deliver precision parts and components to customers' assembly lines. The statement added that CapGrid's deep capabilities in illuminating and tapping into the available capacity of QC-certified Tier 2 suppliers enables it to become a cloud manufacturer and aggregate supplier to Automotive and EV OEMs and Tier 1s. To cater to manufacturers across the country, CapGrid partners with warehousing and logistics players in an asset-light model to be able to deliver to the customer's assembly line.
CapGrid's customer list includes leading players from across 2W, 3W, 4W, Tractor, Construction equipment manufacturers, and large automotive Tier 1s. The company claims to have reduced supply chain complexity by around 90% and reduced procurement cost to zero and material cost by 3-5% for its customers.
“We have digitalized the entire Source-to-Deliver process,” said Dheeraj, Cofounder & CEO of CapGrid. “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,” he added.
Himanshu, Cofounder and COO of CapGrid, said that the company has illuminated manufacturing capabilities of over 30,000 suppliers across 15 countries and identified thousands of suppliers operating at 50-60% capacity. “We allow them to focus, utilise, and innovate on their core manufacturing capabilities by bringing aggregated manufacturing demand,” he added.
“We at Nexus are very excited about partnering with CapGrid as they revolutionize precision components sourcing and procurement for the automotive manufacturing sector via their robust network of cloud manufacturers,” said Sameer Brij Verma, Managing Director at Nexus Venture Partners.
“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 chains while improving margins and OTIF significantly,” he added.
“There is a need to reduce the operational complexity of automotive and industrial manufacturing,” said Vyom Agarwal, Sr. Vice President at ACE (Action Construction Equipment Ltd.).
“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,” he added.