CapGrid Raises ₹50 Cr in Pre-Series B Round to Expand Precision Manufacturing and Enter New Markets

Gurugram-based B2B manufacturing startup CapGrid has raised ₹50 Cr (around $5.2 Mn) in a Pre-Series B funding round led by Hero Enterprise Venture Partners. The company plans to use the fresh capital to strengthen its precision manufacturing capabilities and expand into emerging sectors such as drone manufacturing and data centres.

The funding round values CapGrid at ₹430 Cr (approximately $45.3 Mn), according to cofounder and CEO Dheeraj Tiwari, who shared the details with Inc42.

The round includes both primary and secondary transactions. Existing investors Axilor Ventures, Anicut Capital and Nexus Venture Partners, along with a group of angel investors, also participated.

CapGrid will use part of the primary funding to invest in research and development for higher-end engineered precision components. The remaining capital will support business expansion and growth.

The startup had previously raised $5 Mn in an extended Series A round led by Anicut Growth Fund.

## Connecting Manufacturers With the Right Suppliers

Founded in 2021 by Dheeraj Tiwari and Himanshu Raghuvanshi, CapGrid works with original equipment manufacturers (OEMs) and Tier I suppliers across the automotive, consumer durables and heavy industries sectors.

Unlike traditional manufacturing companies, CapGrid does not own factories. Instead, it operates an asset-light, cloud-based manufacturing platform that connects businesses with third-party manufacturing partners.

The platform coordinates the entire component lifecycle, covering design, development, production and delivery. It also uses artificial intelligence and machine learning to match orders with suitable suppliers and monitor production schedules and quality requirements.

According to CapGrid, many of its manufacturing partners operate at around 60% capacity. By combining orders from multiple OEMs, the startup helps these suppliers make better use of their available production capacity.

Its supply chain control tower provides visibility across sourcing, procurement, manufacturing and deliveries. The company also operates 14 fulfilment centres across major manufacturing clusters in India, helping manage inventory and ensure components reach customers' assembly lines.

Beyond supplier coordination, CapGrid offers services such as new product development, import localisation and value engineering. These services help manufacturers develop components, find domestic alternatives to imported parts and improve product designs and sourcing costs.

## Expanding Beyond the Automotive Industry

Automotive manufacturing was CapGrid's initial focus, as vehicle manufacturers increasingly needed more efficient ways to source components and manage complex supplier networks.

The opportunity remains significant. According to the Automotive Component Manufacturers Association of India (ACMA), India's auto component industry recorded a turnover of ₹7.59 Lakh Cr in FY26, representing 12.7% year-on-year growth. Supplies to OEMs increased 16.3% to ₹6.52 Lakh Cr.

However, CapGrid is now looking to expand beyond automotive manufacturing. Its next areas of focus include drone manufacturing and data centres, where demand for specialised and precision-engineered components is growing.

The move is part of a broader effort to move up the manufacturing value chain by developing more complex components rather than concentrating primarily on procurement and supplier coordination.

## Revenue Growth and Expansion Targets

CapGrid reported operating revenue of approximately ₹240 Cr in FY26, representing growth of around 14% over the previous financial year.

The company is targeting ₹350 Cr in operating revenue for FY27. Its annualised revenue run rate has already increased to approximately ₹360-370 Cr, compared with around ₹300 Cr six months earlier.

CapGrid's next revenue milestone is ₹500 Cr.

The fresh funding is expected to support this growth by strengthening its engineering capabilities, expanding its product offerings and helping it enter new industrial segments.

## Can CapGrid Move Further Up the Manufacturing Value Chain?

CapGrid's latest funding round comes at an important stage in its growth. The company has built a network of manufacturing partners and established relationships with OEMs across several industries. Its asset-light model allows it to coordinate production without investing in factories of its own.

The next challenge is to move beyond procurement consolidation and take on more specialised manufacturing work.

Developing higher-end precision components requires deeper engineering expertise, tighter quality controls and the ability to manage more complex production processes. Simply bringing together available factory capacity may not be enough to build a lasting advantage in these segments.

There is also a question around the financial impact of this expansion. While CapGrid reported around 14% revenue growth in FY26, its FY27 target of ₹350 Cr calls for faster growth.

Entering drone manufacturing and data centres could open up new customer opportunities. However, the company will need to demonstrate that these higher-value projects can translate into stronger business economics.

CapGrid's ability to combine its existing supplier network with advanced engineering and manufacturing capabilities will be central to its next phase of growth.