Tuesday, March 21, 2023

Auto parts sourcing startup CapGrid raises $7 million from Nexus Venture, others

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  • Existing investors Axilor and Anicut Capital participated in the Series A financing round.
  • Deepak Jaina senior partner at Bain and head of the automotive practice in India also participated.
  • CapGrid will use this new funding injection to deepen its technology infrastructure, acquire talent and scale cloud manufacturing.

CapGrid, a cloud-based B2B start-up manufacturing precision parts and components, said Monday it raised $7 million in a Series A funding round led by Nexus Venture Partners. Existing investors Axilor and Anicut Capital also participated in the round.

Deepak Jain, a senior partner at Bain and head of the automotive practice in India, also participated in the round as an angel investor.

CapGrid is building a digital supply network with an advanced technology infrastructure, in collaboration with hundreds Low 2 manufacturers to source, manufacture and deliver precision parts and components to the customer’s assembly line.

CapGrid will use the money to deepen its technology infrastructure, acquire talent and scale cloud manufacturing with its supply partners. Intequant advisors acted as exclusive financial advisors JSA law and Sarvank Associates were legal and secretarial advisers.

The startup offers regular procurement consolidation, NPD (New Product Development), SPD (Spare Parts) sourcing and electric vehicle component sourcing. It currently has more than 5,000 different precision components manufactured through its supplier network of more than 300 partners.

“We at Nexus are very excited about partnering with CapGrid as they revolutionize the procurement and procurement of precision automotive components through their robust network of cloud manufacturers,” said Sameer. Bry Vermasaid CEO of Nexus Venture Partners. “We envision India being a global leader in manufacturing for years to come and believe that CapGrid will increasingly become a preferred partner for OEMs looking to build high quality and flexible supply chains while significantly improving margins and OTIF.” OTIF or fully on time is a supply chain metric to measure delivery performance.

Globally, the automotive component manufacturing segment itself is worth more than $1,000 billion, the startup claims.

The company says it leverages an AI-enabled sourcing platform with more than 30,000 manufacturers and their deep intelligence to make sourcing 10x faster.

“CapGrid has provided insight into the production capabilities of more than 30,000 suppliers in 15 countries and identified thousands of suppliers operating at 50-60% capacity. We enable them to focus on, leverage and innovate on their key manufacturing capabilities by creating aggregated manufacturing demand,” said Himanshu Singh Raghuvanshico-founder and COO of CapGrid.

The Gurgaon-based company claims to have significantly reduced sourcing and procurement complexity, reduced inventory by half and reduced material costs by 5% for leading manufacturers.

“We have digitized the entire source-to-deliver process. Our technology stack and vendor aggregation capabilities help customers reduce operational complexity and focus on innovation. With our decentralized global supply network, we can meet the immediate material needs of Original Equipment Manufacturers (OEMs) and Tier 1s around the world,” said co-founder and CEO Dheeraj Kumar Tiwari.

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