Karkhana.io raises $6.3 million in a Series A funding round
Summary
The startup focuses on fortifying India’s MSME ecosystem and aims to redefine the Indian manufacturing industry. Founded in 2018, Karkhana.io collaborates with OEMs in various sectors, boasting a supplier network of over 400 MSMEs and says it is targeting 3,000 suppliers in the next three years.
Business-to-business (B2B) custom manufacturing platform Karkhana.io has raised $6.3 million in a Series A funding round led by Arkam Ventures and Susquehanna Asia Venture. The funding round also witnessed participation from existing investor Vertex Ventures Southeast Asia and India.
According to the startup, the fresh funds will be used to fuel the expansion of its supplier base, establish a robust electronics supply chain, and drive scaling efforts in the US and Europe.
“This funding extends beyond growing our platform; it’s a dedication to fortifying India’s MSME (medium, micro, and small enterprise) ecosystem. We want to create a significant impact in sectors with expansive growth potential, addressing surging demand and propelling Karkhana.io to redefining the landscape of the Indian manufacturing industry,” said Sonam Motwani, Founder and CEO, Karkhana.io.
Founded in 2018, Karkhana provides sourcing and contract manufacturing solutions to original equipment. manufacturers (OEMs) and tech companies through its manufacturing MSME network.
Also read: How Indian markets value new-age tech companies is no longer a puzzle: RTP Global’s Nishit Garg
It works with OEMs across product categories like electric vehicles, medical equipment, consumer electronics and aerospace among others. The platform claims to have a supplier network of over 400 MSMEs and is looking to tap 3,000 suppliers in the next three years.
As per Karkhana, India’s manufacturing sector is expected to be worth $1 trillion by 2025-26, and contributions from MSMEs will be pivotal in achieving this lofty goal. Factors such as competitive pricing, extensive labour pools, rising domestic demand and geopolitical considerations such as the China Plus Pne strategy place India as a manufacturing destination for the world. If equipped with the right resources, India’s 63 million-strong MSME ecosystem has the potential to become an integral part of the manufacturing supply chain for global businesses, the firm added.
“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,” said Bala Srinivasa, Managing Director, Arkam Ventures.
Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout
3 Mins Read
Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter