B2B on-demand manufacturing platform Karkhana.io has successfully raised $6.3 million (approximately INR 52.3 Crores) in its Series A funding round, with co-leadership from Arkam Ventures and Susquehanna Asia Venture Capital. Vertex Ventures Southeast Asia and India, an existing investor, also participated in the funding round.
The fresh capital infusion is earmarked for expanding Karkhana.io’s supplier base, establishing a resilient electronics supply chain, and driving scaling initiatives in the United States and Europe.
Sonam Motwani, founder and CEO of Karkhana.io, expressed the broader significance of the funding, stating, “This funding extends beyond growing our platform; it’s a dedication to fortifying India’s MSME ecosystem. We want to create a significant impact in sectors with expansive growth potential, addressing surging demand and propelling Karkhana.io to redefine the landscape of the Indian manufacturing industry.”
Founded in 2018 by Motwani and Karthik MC, Karkhana.io specializes in providing customized manufacturing solutions to original equipment manufacturers (OEMs) and micro, small, and medium enterprises (MSMEs) operating in various product industries such as electric vehicles, medical equipment, consumer electronics, and aerospace.
The platform’s manufacturing solutions cater to diverse production scales, from small batches to mass production. Currently, Karkhana.io boasts a supplier network comprising over 400 MSMEs, enabling more than 90 OEMs to fulfill their contract manufacturing requirements.
Karkhana.io’s digital platform simplifies the sourcing process, offering a unified dashboard for companies to connect with a network of vetted suppliers, irrespective of their scale. This approach aims to address manufacturing inefficiencies and streamline the production chain.
In 2021, Karkhana.io secured $1.2 million in pre-Series A funding from Vertex Ventures Southeast Asia and India. At that time, the company outlined plans to utilize the funding for further growth and to enhance its technology platform, meeting the escalating demand for custom manufacturing.
The manufacturing solutions sector is witnessing increased attention from investors, exemplified by Aequs, a precision manufacturing platform in aerospace and other verticals, securing $54 million in funding last year. The funds were earmarked for launching an advanced technology product (ATP) vertical to manufacture high-precision components for multiple global consumer electronics companies.
