CapGrid raises ₹50 Cr to expand into drones, data centres

Delhi-based B2B manufacturing startup CapGrid has secured fresh funding in a pre-Series B round, with Hero Enterprise Venture Partners taking the lead. The investment positions the company to develop engineered precision components and branch into new sectors like drone manufacturing and data centres.

The round, as reported by Inc42, included both primary and secondary transactions, with backing from existing investors such as Axilor Ventures, Anicut Capital, and Nexus Venture Partners. Founded in 2021 by Dheeraj Tiwari and Himanshu Raghuvanshi, CapGrid operates a cloud-based platform that connects original equipment manufacturers (OEMs) with third-party suppliers, avoiding direct factory ownership.

The startup leverages AI and machine learning to optimize order matching and production tracking, aggregating demand from multiple OEMs to utilize underused factory capacity. Its supplier network, which typically operates below full utilization, benefits from this pooled demand. CapGrid’s platform also oversees sourcing, procurement, and logistics through 14 fulfillment centers strategically located near major OEM clusters in India.

Initially focused on automotive components, CapGrid has since expanded into consumer durables and heavy industries. The automotive sector, a key market for the startup, saw turnover grow significantly in FY26, reflecting broader industry trends. Now, CapGrid aims to diversify further by entering drone and data center component manufacturing.

Recent financial performance suggests steady growth, with operating revenue increasing in the last fiscal year. The company has set ambitious targets for the coming year, though the specifics of its revenue trajectory remain closely watched. Earlier funding rounds have supported its expansion, including a previous round led by Anicut Growth Fund.

Unlike traditional contract manufacturers, CapGrid’s model relies on technology rather than physical assets, allowing for rapid scaling without heavy capital expenditure. However, its ability to transition into higher-end precision components will depend on its engineering capabilities, not just its procurement network.

The move into drones and data centers could broaden its customer base, but the economics of more complex manufacturing remain uncertain. Without clear disclosures on margins or working capital, it’s unclear whether higher-value orders will translate into improved profitability. While its existing supplier relationships provide a foundation, competing in precision engineering may require more than just spare capacity.

CapGrid’s expansion comes amid a wave of funding for manufacturing startups. Earlier this year, AI-driven platforms like CADDi and D-Robotics secured significant rounds, though their focus differs from CapGrid’s coordination-driven approach.

The next phase will test whether an asset-light model can sustain growth as the company moves into more specialized manufacturing. Investors will be watching to see if CapGrid can improve margins while scaling, or if its expansion into new sectors stretches its core capabilities. For now, the latest funding round reflects confidence in its potential to evolve beyond procurement and into higher-value components.

Sources: inc42.com