According to reports, Gurgaon-based CapGrid, a B2B cloud manufacturing startup for precision parts and components, has raised $7 million (about Rs 57 crore) in a Series A round led by Nexus Venture Partners.

In the funding round existing investors Anicut Capital and Axilor Ventures, which was founded by Infosys co-founders Kris Gopalakrishnan and SD Shibulal also participated.

The company last raised Rs 4.1 crore in November 2021 in its seed funding round from Anicut, Axilor and Firstcheque.

According to the company, it is currently getting over 5,000 different precision components manufactured through its supplier network of more than 300 partners. CapGrid’s AI-powered platform and network of suppliers allows manufacturers to reduce the complexities in the direct material sourcing and procurement process.

These capabilities allow manufacturers to expedite the sourcing of the high complexity categories and consolidate the supplier base for precision components.

CapGrid's co-founders Dheeraj Tiwari and Himanshu Singh Raghuvanshi said that the company, which primarily serves original equipment manufacturers (OEMs) and tier-1 suppliers in the automotive sector, will utilize the funds to expand its team, scale up its warehouse presence across major automotive zones and add to its cloud manufacturing capacity.

Tiwari says, “In the automotive sector, a tier-1 supplier is a vendor that directly supplies parts to the OEMs, a tier-2 supplier provides parts to a tier-1 supplier, and so on. Primarily, we are targeting three things. A decent amount will go into building our team. We recently expanded from 24 people to around 45 people. We will also invest in our MSME partners—to increase the utilization levels of our 25 most hungry suppliers.”

Raghuvanshi, says, “We have warehouse presence in six cities. There are 12-15 important manufacturing zones in India. As our pipeline grows, our aim is to grow into all of these 12-15 key zones over the next year.”