CapGrid, a Gurugram-based business-to-business (B2B) cloud manufacturing startup, has raised $7 million in a Series A funding round led by Nexus Venture Partners. The round also witnessed participation from existing investors Axilor and Anicut Capital.
In the round, Deepak Jain, a senior partner at Bain and the head of the automotive practice in India, also invested as an angel.
The startup will use the money to deepen its technology infrastructure, expand talent acquisition, and scale up cloud manufacturing with its supply partners. The startup is developing a digital supply network with an advanced technological infrastructure.
With the help of hundreds of Tier 2 manufacturers and a cutting-edge technological infrastructure, CapGrid is establishing a digital supply network that will enable it to acquire, produce, and distribute precise parts and components to customers’ assembly lines.
CapGrid has illuminated the manufacturing capabilities of auto spare parts
CapGrid, a company founded in 2019 by Dheeraj Tiwari and Himanshu Raghuvanshi, specializes in sourcing, producing, and delivering automobile parts and components.
It has an AI-based platform that collaborates with tier-2 producers to source, produce, and distributes these parts and components to the customer’s assembly line.
The startup provides NPD (New Product Development), SPD (Spare Parts) sourcing, and sourcing for electric car componentry in addition to standard procurement consolidation.
It uses its supplier network of more than 300 partners to manufacture more than 5,000 precision components.
“CapGrid is working closely with automotive and industrial manufacturers as a strategic partner for the supply of precision parts and components. Our technology stack and supplier aggregation capability help customers reduce operational complexity,” said Dheeraj Tiwari.
CapGrid has cut its customers’ material costs by 3-5 percent, procurement costs to zero, and supply chain complexity by 90 percent.
Globally, the automobile industry is worth more than $1 billion to this segment. CapGrid is dedicated to using this new infusion of cash to scale up cloud manufacturing with its supplier partners, further develop its technological infrastructure, and hire more expertise.
CapGrid received INR 4.1 crore from Anicut Angel Fund, Axilor Ventures, and First Cheque in 2021 as part of its seed fundraising round.