Delhi NCR-based CapGrid has raised ₹50 crore in a Pre-Series B funding round, led by Hero Enterprise Venture Partners, to advance its manufacturing capabilities beyond automotive components into emerging sectors like drone manufacturing and data centers.
- Raised ₹50 Cr Pre-Series B led by Hero Enterprise Venture Partners
- Focus on higher-end precision components, drones, and data centers
- Platform uses AI to optimize supplier capacity and supply chains
What happened
CapGrid secured ₹50 crore (approximately $5.2 million) in a Pre-Series B funding round, achieving a valuation of ₹430 crore ($45.3 million). The round was led by Hero Enterprise Venture Partners, the investment arm of Hero Enterprise, with contributions from Axilor Ventures, Anicut Capital, Nexus Venture Partners, and angel investors. The funding includes both primary and secondary transactions.
The capital will be deployed to enhance research and development focused on high-end engineered precision components and to support the company's business expansion efforts. CapGrid previously raised $5 million in an extended Series A round, indicating steady investor confidence in its growth strategy.
Why it matters
CapGrid addresses a critical gap in India’s manufacturing sector by optimizing the use of supplier capacity through its cloud manufacturing platform. By applying AI and machine learning, it efficiently matches OEM orders with third-party suppliers, many of which currently operate at just 60% capacity. This model promotes better asset utilization across automotive, consumer durables, and heavy industries.
The company’s decision to move beyond the automotive sector and enter specialized areas like drones and data centres signals a strategic push to capture higher-margin manufacturing opportunities. These sectors represent rapidly evolving technology-driven markets, providing CapGrid a chance to climb the manufacturing value chain.
What to watch next
CapGrid aims to increase its operating revenue from ₹240 crore in FY26 to ₹350 crore in FY27, with an annualized revenue run rate recently rising to ₹360-370 crore and a longer-term target of ₹500 crore. Key indicators to monitor include the company’s ability to scale its engineered precision components production and successfully penetrate the drone and data center supply markets.
The fundamental test will be whether enhanced engineering capabilities and new sector focus translate into improved margins and solid working capital management. Maintaining competitive advantage amid complex manufacturing requirements will be crucial for CapGrid’s sustainable growth and profitability.