Manufacturing solutions provider Karkhana.io has raised $6.3 million from Arkam Ventures and Susquehanna Asia Venture Capital.
The Series 'A' round of funding also saw participation from Vertex Ventures Southeast Asia and India—the existing investor of the startup that connects the country's manufacturing micro, small and medium enterprises and the original equipment manufacturers.
The proceeds will be deployed to fund the expansion of the supplier base, set up a robust electronics supply chain and expand into U.S. and Europe, Chief Executive Officer and founder Sonam Motwani said.
"This funding extends beyond growing our platform, it's a dedication to fortifying India's MSME ecosystem," Motwani told NDTV Profit. "We want to create a significant impact in sectors with expansive growth potential."
Sonam Motwani, founder and CEO of Karkhana.io. (Source: Company)
India's manufacturing MSMEs account for 45% of industrial output and 40% of all exports, according to Bala Srinivasa, managing director of Arkam Ventures.
"While there is a surge in domestic and international demand from the OEMs, most small suppliers are poorly equipped to tap into new order flows, market their capabilities and find ways to maximise their capacity utilisation," Srinivasa said. "We were attracted to a strong Karkhana.io team that provides a differentiated technology platform addressing these challenges while enabling a much-needed layer of trust, efficiency, and quality."
The technology-enabled platform of Karkhana.io provides sourcing and contract manufacturing solutions to OEMs and technology companies through its manufacturing MSME network in India.
Karkhana.io works with OEMs across product categories like electric vehicles, medical equipment, consumer electronics and aerospace, helping them with a custom range of manufacturing solutions from small batches to mass production.
It has a supplier network of over 400 MSMEs currently, enabling more than 90 OEMs to meet their contract manufacturing requirements. In the next three years, the company's vision is to empower more than 3,000 MSME suppliers.
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