CapGrid’s AI-powered supplier platform and network enables manufacturers to reduce the complexities of the material sourcing and direct sourcing process. These capabilities allow manufacturers to accelerate the sourcing of high complexity categories and consolidate the supplier base for low complexity precision components, the statement added.
CapGrid currently serves a range of industries in automotive, agricultural equipment, earthmoving equipment, aerospace, oil and gas, consumer durables, and electric vehicles (EVs). CapGrid currently works with more than 30,000 suppliers in 15 countries and with several automotive suppliers.
CapGrid was founded in July 2020 by Dheeraj Kumar Tiwari and Himanshu Singh Raghuvanshi. Both founders are former management consultants, having worked with manufacturers / OEMs in India, USA and Japan for over a decade. Through their previous experiences serving manufacturers and OEMs, the founders saw a gap with manufacturers performing complex, manual, time-consuming direct material sourcing processes.
Dheeraj Kumar Tiwari, Co-Founder and CEO of CapGrid, said: âStrategic direct material sourcing, which accounts for 60-70% of revenue, has been largely spared by innovation. We are building a sourcing-driven business aimed at disrupting the procurement and purchasing cycle of factory supplies. We have been seeded so far and this seed capital will be used to hire the right talent, innovate products and expand our fulfillment operations. We are aiming for an annual turnover of Rs 200 crore by the end of 2022. ”
Ashvin Chadha, co-founder of Anicut Angel Fund, said: âThe manufacturing industry, especially direct materials sourcing, has long been underserved. CapGrid is transforming that by tackling industry issues such as long parts supply cycle, inefficient supplier development process, unorganized supplier information and lack of supply data.
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Nandan Venkatachalam, Director at Axilor Ventures, added: âDirect material sourcing is the biggest cost center for manufacturers and has a supply chain riddled with inefficiencies. An average manufacturer goes through a 50-step process between stakeholders and works with over 1,000 suppliers to source direct material, with each layer acting as a cost center. CapGrid’s platform enables manufacturers to automate this process, expand their global supply base, and reduce costs.
Kushal Bhagia, CEO of First Check, said: âCapGrid’s SaaS solution combined with the commercial offering offers a multitude of benefits to the OEM. CENSIE Capital Partners was the financial advisor to CapGrid Solutions for this investment round.