CapGrid Solutions, a B2B manufacturing startup backed by Nexus Venture Partners, has raised $5 million (approximately Rs 45 crore) in a funding round led by Anicut Growth Fund, as confirmed by CEO and founder Dheeraj Tiwari. Existing investors Nexus Venture Partners and Axilor Ventures also participated, bringing the company’s valuation to Rs 305 crore post-investment.
Auto component industry experts Sunjay Kapur and Vivek Vikram Singh, chairperson and managing director of Sona Comstar, respectively, also joined the round. The funds will fuel global expansion and invest in technology to enhance supply chain and operational efficiencies.
“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,” Tiwari said, adding the company is aiming for its global business to contribute 30% to its overall revenue in the next 12 months.
Founded in 2020 by Tiwari and Himanshu Singh Raghuvanshi, CapGrid Solutions is a Gurugram-based company supporting original equipment manufacturers (OEMs) and tier-1 suppliers in the automotive industry by simplifying direct material sourcing and procurement.
The company connects OEMs with suppliers for precision parts and components. Currently, CapGrid operates 11 fulfilment centres and partners with 50 strategic supply manufacturers.
Regarding the investment, Dhruv Kapoor, chief executive of 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 needed to streamline inefficiencies as India transitions towards a manufacturing-led economy.”
According to Tiwari, CapGrid initially focused on the automotive industry and has now expanded into the consumer durables sector, which accounts for nearly half of its revenue.
“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 said.
The company reported a revenue of approximately Rs 99 crore in the previous fiscal year and aims to achieve Rs 220 crore in FY25. Tiwari also mentioned that CapGrid is targeting profitability in the next fiscal year.
In January 2023, Nexus Venture Partners led a funding round that raised $7 million for the company.
“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 and across the globe,” Sona Comstar’s Kapur said.
