CapGrid Raises INR 4.1 Crore Seed Funding
The sum will be utilised to boost product innovation, scaling operations and strengthening the team
CapGrid, a B2B commerce company specializing in sourcing & procurement of direct-material supplies, has raised INR 4.1 crore seed funding from Anicut Angel Fund, Axilor Ventures and Firstcheque.The B2B startup plans to leverage the new funds to boost product innovation, scale operations, and expand its team efficiency.
CapGrid’s AI-powered platform and deep network of suppliers allows manufacturers to significantly reduce the complexities in the direct material sourcing and procurement process.
CapGrid was founded in July 2020 by Dheeraj Kumar Tiwari and Himanshu Singh Raghuvanshi.
Speaking about the funding, Dheeraj Kumar Tiwari, co-founder & CEO, CapGrid said, “Strategic sourcing of direct material, which constitutes 60 to 70 per cent revenue, has been largely untouched by innovation. Most of the other startups have been focusing on the procurement of indirect spend. We are building a sourcing-focused company aiming to disrupt the sourcing and purchase cycle for the factory supplies. We have been bootstrapped so far and this seed capital will go into hiring the right talent, product innovation and expanding our fulfilment operations. We are eyeing an annual revenue of INR 200 crore by 2022. We have bagged a contract worth INR 50 crore by way of new customer acquisition.”
Speaking about the investment, Ashvin Chadha, co-founder, Anicut Angel Fund, said, “Manufacturing industry, especially the direct material sourcing, has long been underserved and CapGrid had a vision to commission the narrative. Dheeraj and Himanshu are transforming this by addressing industry pain-points such as long-drawn parts sourcing cycle, inefficient vendor development process, unorganised supplier information, and lack of sourcing data. We are totally convinced with their mission.”
The startup has strong capability intelligence of over 30,000 plus suppliers across 15 plus countries, said a statement.