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 the low complexity precision components, the release added.
CapGrid is currently serving a spectrum of industries across automotive, agricultural equipment, earthmoving equipment, aerospace, oil and gas, consumer durables, and electric vehicles (EVs). CapGrid currently works with over 30,000 suppliers across 15 countries and with several automotive OEMs.
CapGrid was founded in July 2020 by Dheeraj Kumar Tiwari and Himanshu Singh Raghuvanshi. Both founders are ex-management consultants, having worked with manufacturers/ OEMs across India, US and Japan for over a decade. Through their previous experiences of serving manufacturers & OEM’s, the founders saw a gap with manufacturers running complex direct material sourcing processes in a manual, long-drawn way.
Dheeraj Kumar Tiwari, cofounder & CEO, CapGrid said, “strategic sourcing of direct material, which constitutes 60-70% revenues, has been largely untouched by innovation. We are building a sourcing-focused company aiming to disrupt the sourcing and purchase cycle for the factory supplies. We have been bootstrapped so far and this seed capital will go into hiring the right talent, product innovation and expanding our fulfilment operations. We are eyeing an annual revenue of Rs 200 crore by 2022 end.”
Ashvin Chadha, cofounder, Anicut Angel Fund, said, “Manufacturing industry, especially the direct material sourcing, has long been underserved. CapGrid is transforming this by addressing industry pain-points such as long-drawn parts sourcing cycle, inefficient vendor development process, unorganized supplier information, and lack of sourcing data.”
Nandan Venkatachalam, principal at Axilor Ventures added, “directly material sourcing is the largest cost centre for manufacturers and has a supply chain riddled with inefficiencies. An average manufacturer goes through a 50-step process across stakeholders and works with over 1,000 suppliers to source direct material, with each layer acting as a cost centre. CapGrid’s platform allows manufacturers to automate this process, expand their global sourcing base and reduce costs.”
Kushal Bhagia, CEO at First Cheque, said, “CapGrid’s SaaS solution coupled with the commerce offering gives a multitude of benefits to the OEM.” CENSIE Capital Partners was the financial advisor to CapGrid Solutions for this said investment round.
