In its latest round of funding, led by Nexus Venture Partners, CapGrid, a B2B cloud manufacturing startup for precision parts, announced it had raised $ 7 million.
Existing investors Axilor and Anicut Capital also participated in the round. In the round, Deepak Jain, a senior partner at Bain and the director of the automotive business in India, also invested as an angel.
With the help of hundreds of Tier 2 manufacturers and an advanced technology infrastructure, CapGrid is establishing a digital supply network that will enable it to acquire, produce, and transport precise parts and components to customers’ assembly lines. CapGrid can serve as a cloud maker and aggregate supplier to automotive and EV OEMs and Tier 1s because to its extensive capabilities in identifying and utilising the capacity of QC-certified Tier 2 providers. CapGrid partners with storage and logistics companies in an asset-light strategy to be able to supply to the customer’s assembly line and serve manufacturers across the nation.
CapGrid’s customer list has leading players from across 2W, 3W, 4W, Tractor, Construction equipment manufacturers and large automotive Tier 1s. For these customers, CapGrid through various offerings e.g. regular procurement consolidation, NPD (New Product Development), SPD (Spare Parts) sourcing and Electric Vehicle component sourcing, becomes an aggregate supplier. CapGrid has been able to reduce the supply chain complexity by ~90%, reduce procurement cost to zero and material cost by 3-5% for its customers.
CapGrid is currently getting 5,000+ different precision components manufactured through its supplier network of 300+ partners and fulfilling it to customer’s assembly line seamlessly owning delivery and quality in the process. Globally this segment is worth $1,000 Bn+ in the automotive space itself. CapGrid is committed to utilizing this fresh funding infusion to deepen its technology infrastructure, talent acquisition and scale up cloud manufacturing with its supply partners.
Commenting 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. ”