Karkhana.io, a leading player in the manufacturing tech sector, has secured $6.3 million in Series A funding, marking the growing confidence investors place in the platform’s innovative approach to serving OEMs and building a robust supplier network.
Founded in 2018, Karkhana.io provides flexible and scalable contract manufacturing solutions for various product categories. The platform addresses the industry’s challenges by offering transparency and standardization in procurement processes.
The recent funding round also saw participation from existing investors Vertex Ventures Southeast Asia and India, positioning Karkhana.io as a formidable player in the manufacturing tech sector. The company plans to utilize the funds to bolster its supplier base, enhance the electronics supply chain, and broaden its footprint in the US and Europe.
Revolutionizing Manufacturing: Karkhana.io’s Unique Proposition
Karkhana.io’s digital platform is a one-stop solution for Original Equipment Manufacturers (OEMs) and tech companies, streamlining the sourcing process. The platform’s single dashboard enables companies to access a vetted network of suppliers, transcending scale differences and mitigating manufacturing inefficiencies.
“When we started, we were highly focused on high-precision mechanical components; however, through our journey, we realized we can have a much deeper relationship and much higher wallet-share with companies we work with if we can provide solutions for the complete manufacturing,” said CEO Sonam Motwani.
The Mumbai-based firm collaborates with OEMs across diverse product categories, including Electric Vehicles (EVs), Medical Equipment, Consumer Electronics, and Aerospace. Karkhana.io specializes in delivering tailor-made manufacturing solutions, catering to small-scale and mass-production requirements.
“EV is a growing segment, and we are seeing excellent demand from this segment. We see Karkhana having the expertise to set up the supply chain for EVs, for Aerospace and separate segments like this in the future,” Motwani added.
Building Momentum, Supplier Network and Revenue Growth
Currently boasting a supplier network of over 400 Micro, Small, and Medium Enterprises (MSMEs), Karkhana.io facilitates contract manufacturing for 90 OEMs. The company’s vision for the next three years involves empowering over 3,000 MSME suppliers.
In FY23, Karkhana.io recorded a substantial revenue growth of 7X, reaching approximately INR 20 crores. The momentum continued in FY24, with the company achieving a revenue milestone of around INR 150 crores.
Investors are placing substantial bets on manufacturing and manufacturing tech enablement startups like Karkhana.io. The Series A funding follows a trend in 2023, where firms like Etheral Machines, Zetwerk, and Frigate secured investments across multiple funding rounds. Karkhana.io faces competition, particularly with Zetwerk.
“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.
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