Vertex Ventures Southeast Asia & India's portfolio Karkhana.io raised series A funding of USD 6.3 Million
● Existing investor Vertex Ventures Southeast Asia and India has also participated in this round.
● Funding infusion will be used to bolster supplier base, enhance electronics supply chain, and propel expansion across the US and Europe.
● To empower 3000 MSME suppliers in the next 3 years
Mumbai, 10 January 2024: Karkhana.io, a custom manufacturing platform driving digital transformation for India’s manufacturing Micro, Small and Medium Enterprises (MSMEs), today announced its Series A funding of USD 6.3 Million led by Arkam Ventures and SIG Venture Capital. The round also saw participation from existing investor Vertex Ventures Southeast Asia and India. The new fundings will be deployed to fuel expansion of its supplier base, establish a robust electronics supply chain, and drive scaling efforts in the US and Europe.
India’s manufacturing sector is expected to be worth USD 1 trillion by 2025-26, and contribution from MSMEs will be pivotal in achieving this lofty goal. Factors such as cost advantage , extensive labour pools, rising domestic demand and geopolitical considerations like such as the China plus one strategy place India as a manufacturing destination for the world. If equipped with the right resources, India’s 63 million strong MSMEs ecosystem has the potential to become an integral part of the manufacturing supply chain for global businesses across Electronics, Aerospace, Clean Energy and Auto parts.
Against this backdrop, Karkhana.io’s tech-enabled platform is well poised to provide sourcing and contract manufacturing solutions to OEMs and tech companies, through its manufacturing MSMEs network of manufacturing MSMEs in India. The firm works with OEMs across product categories like EVs, Medical Equipment, Consumer Electronics, Aerospace and others, helping them with a custom range of manufacturing solutions from small batch to mass production. The platform currently has a supplier network of 400+ MSMEs enabling 90+ OEMs for their contract manufacturing requirements. In the next 3 years, the company’s the vision is to empower 3000+ MSME supplies
Announcing the latest fund raise, Sonam Motwani, Founder and CEO, Karkhana.io, said, "Our investors' trust underscores our commitment to revolutionise manufacturing through technology, offering flexible and scalable solutions. This funding extends beyond growing our platform; it's a dedication to fortifying India's MSMEs ecosystem. We want to create a significant impact in sectors with expansive growth potential, addressing surging demand and propelling Karkhana.io to redefine the landscape of the Indian manufacturing industry."
Announcing its investment in Karkhana.io, Bala Srinivasa, Managing Director, Arkam Ventures said. “India’s manufacturing MSMEs account for 45% of industrial output and 40% of all exports. While there is a surge in domestic and international demand from OEMs, most small suppliers are poorly equipped to tap into new order flows, market their capabilities and find ways to maximize their capacity utilization. We were attracted to a strong Karkhana.io team that provides a differentiated technology platform addressing these challenges while enabling a much-needed layer of trust, efficiency, and quality.”
Speaking about the investment in Karkhana.io Bhavani Rana, Investment Advisor at SIG Venture Capital, stated, “Investing in Karkhana.io aligns with our vision of supporting innovative B2B platforms that revolutionise traditional industries. We are confident in Karkhana.io's on-demand manufacturing model, which is poised to reshape the manufacturing landscape. ”
Kanika Mayar, Partner, Vertex Ventures SEA Southeast Asia and India, expressed her enthusiasm about supporting the funding round, and said, “We remain impressed by Karkhana.io’s capacity to address the evolving needs of equipment manufacturers, and brands seeking streamlined and scalable manufacturing solutions. This investment strengthens our commitment towards supporting ventures that bring deep innovation to traditional sectors.”
Founded in 2018, Karkhana.io’s tech-enabled platform provides sourcing and contract manufacturing solutions to OEMs and tech companies, through its network of manufacturing MSMEs in India. From small scale to large volume, product assembly to product localization, the platform provides flexible and scalable solutions via its tech-enabled marketplace for any custom manufacturing. The firm effectively address the lack of standardization and transparency in procurement processes.
Karkhana.io’s digital platform streamlines and simplifies these processes, providing a single dashboard for companies to access a network of vetted suppliers, regardless of their scale, and overcome these manufacturing inefficiencies. Over the years, Karkhana has helped MSMEs establish their businesses as well as enabled enterprises to increase their production by utilizing its capacity to increase their production. This Series A funding propels Karkhana.io into an accelerated phase of its mission to grow its manufacturing capacity through the strength of MSMEs as a backbone, thereby contributing to the growth story of India.
Karkhana.io is a leading manufacturing company in India that specialises in providing flexible and scalable manufacturing solutions. From startups to established enterprises, the platform specialises in serving small and large-volume production, assembly, and contract manufacturing. With a network of over 400 certified suppliers, Karkhana.io excels across diverse industries, including aerospace, EVs, electronics, and medical technology. Led by co-founders Sonam Motwani and Karthik MC, the platform integrates technology for a seamless manufacturing experience from RFQ to delivery.
*For more information, visit karkhana.io