B2B manufacturing startup CapGrid has raised ₹46.28 crore ($4.87 million) in a pre-Series B funding round led by new investor Hero Enterprise Partner Ventures. Existing backers Nexus Venture Partners, Anicut Capital and Axilor Technology Fund also participated in the round.
The fresh capital comes at a time when India’s manufacturing ecosystem is seeing growing demand for digital procurement, supplier discovery and production-coordination platforms, particularly across automotive, EV and industrial sectors.
Round Details
According to regulatory filings, CapGrid’s board approved the issuance of 2,888 compulsorily convertible preference shares at ₹1,60,263 per share. Hero Enterprise Partner Ventures led the round with ₹38.30 crore, while Axilor Technology Fund and Anicut Capital invested ₹3 crore each. Nexus Venture Partners and Amit Jain contributed ₹1 crore each.
Following the round, CapGrid’s post-money valuation is estimated at ₹430 crore ($46 million), representing an increase of more than 50% from the valuation implied during its earlier Series A round.
What CapGrid Does?
Founded in July 2020 by Dheeraj Kumar Tiwari and Himanshu Singh Raghuvanshi, CapGrid operates an AI-powered platform for B2B manufacturing. The company serves industries including automotive, agricultural equipment, earthmoving equipment, aerospace, oil and gas, consumer durables and electric vehicles.
The platform helps manufacturers and enterprises streamline sourcing, supplier discovery and production-related workflows. As manufacturing supply chains become more complex, platforms such as CapGrid are positioning themselves as digital layers that connect buyers, suppliers and production requirements more efficiently.
Use of Funds
CapGrid will deploy the newly raised capital towards expansion and growth, along with meeting additional capital requirements.
The company has not yet disclosed specific plans around geography, product development or hiring. However, the participation of Hero Enterprise Partner Ventures is notable given the investor’s proximity to India’s mobility and manufacturing ecosystem.
Financial Performance
CapGrid’s operating revenue grew 2.1 times to ₹209 crore in FY25, up from ₹99.2 crore in FY24. During the same period, its net loss narrowed marginally to ₹25.92 crore. The company is yet to file its FY26 financial results.
The revenue growth suggests rising adoption of its platform among enterprise buyers, although the company will need to demonstrate a clearer path towards profitability as it scales.
Investor Confidence
After the latest allotment, Nexus Venture Partners remains the largest external shareholder with an 18.08% stake, followed by Anicut Capital at 16.40% and Axilor Ventures at 11.94%. Co-founders Dheeraj Kumar Tiwari and Himanshu Singh Raghuvanshi each hold an 18.63% stake.
The round also reflects continued investor interest in India’s B2B manufacturing and supply-chain technology space, where startups are attempting to bring greater transparency, speed and efficiency to traditionally fragmented procurement and production processes.
What Lies Ahead?
With Hero Enterprise Partner Ventures joining its cap table, CapGrid is expected to deepen its presence across mobility-linked manufacturing and expand its enterprise customer base. The company’s next challenge will be converting rapid revenue growth into sustainable unit economics while scaling its AI-led manufacturing platform across more industries.
