Karkhana.io Raises $6.3M in Series A to Expand B2B Manufacturing Services Globally

10 Jan 2024 , 01:27 PM

B2B on-demand manufacturing platform Karkhana.io secures $6.3 million in Series A funding led by Arkam Ventures and Susquehanna Asia Venture, with participation from existing investor Vertex Ventures Southeast Asia and India.

The funds will be utilized to expand services in the US and UK, while strengthening the MSME network in India, according to Karkhana.io’s founder and CEO, Sonam Motwani.

Established in 2018, Karkhana.io offers flexible and scalable contract manufacturing solutions for various product categories, addressing the lack of standardization and transparency in procurement processes.

The platform collaborates with OEMs in sectors such as EVs, Medical Equipment, Consumer Electronics, and Aerospace, providing custom manufacturing solutions from small batches to mass production.

Currently, Karkhana.io has a supplier network of 500 MSMEs, serving 90-100 OEMs for their contract manufacturing needs, with a vision to empower over 3000 MSME suppliers in the next three years.

The company also assists EV makers with supply chain management and tracking, anticipating growth in the EV segment.

In FY23, the firm recorded Rs 20 crores in revenues, reflecting a 7X growth, and in FY24, it achieved revenues of around Rs 150 crores.

Karkhana.io previously raised $1.5 million in its Seed round in January 2021, led by Vertex Ventures Southeast Asia & India.

Investors show strong interest in manufacturing and tech enablement startups in the sector, with Karkhana.io competing closely with Zetwerk.

Bala Srinivasa, Managing Director at Arkam Ventures, highlights Karkhana.io’s technology platform addressing challenges for small suppliers and fostering trust, efficiency, and quality in the industry.

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