Gurugram-based B2B manufacturing startup CapGrid has raised ₹50 crore in a Pre-Series B funding round at a valuation of ₹430 crore, as it looks to move into higher-value precision engineering and expand beyond the automotive sector.
The round was led by Hero Enterprise Venture Partners, the investment arm of Hero Enterprise. Existing investors Axilor Ventures, Anicut Capital and Nexus Venture Partners, along with angel investors, also participated. The transaction includes both primary and secondary components, according to co-founder and CEO Dheeraj Tiwari.
CapGrid plans to use the fresh capital to strengthen research and development (R&D), develop advanced engineered components and expand into emerging manufacturing segments such as drones and data centres.
The funding marks another step in the startup’s effort to build a technology-led manufacturing network without owning factories.
Dheeraj Tiwari’s CapGrid connects OEMs with manufacturing partners
Founded in 2021 by Dheeraj Tiwari and Himanshu Raghuvanshi, CapGrid works with original equipment manufacturers (OEMs) and Tier I suppliers across automotive, consumer durables and heavy industries.
Rather than operating its own manufacturing facilities, the company uses a cloud-based platform to coordinate component design, supplier selection, production and delivery through third-party manufacturers.
Its AI and machine learning tools help match customer orders with suitable suppliers and track production schedules and quality requirements.
The company also operates a supply chain control tower covering sourcing, procurement, production and deliveries. It has 14 fulfilment centres across major OEM clusters in India to manage inventory and support timely component supplies.
CapGrid says its manufacturing partners operate at around 60% capacity. By combining orders from multiple OEMs, the startup aims to make better use of this available capacity.
Its services also include new product development, import localisation and value engineering, helping manufacturers develop components, replace imported parts and improve sourcing costs.
Hero Enterprise leads ₹50 crore funding round
The latest investment values CapGrid at ₹430 crore, according to Tiwari. The round includes primary capital for the business as well as secondary transactions involving existing shareholders.
The company had previously raised $5 million in an extended Series A round led by Anicut Growth Fund.
The new funding will support R&D into more advanced precision components, alongside business expansion. Moving into higher-value engineering could help CapGrid deepen its relationships with existing OEM customers and enter industries with different component requirements.
CapGrid reports ₹240 crore FY26 operating revenue
CapGrid's reported operating revenue grew around 14% to ₹240 crore in FY26, according to figures shared by Tiwari. The company has set a revenue target of ₹350 crore for FY27.
Its annualised revenue run rate has reportedly increased from around ₹300 crore six months ago to ₹360–370 crore. The next target is ₹500 crore.
These figures represent different measures: FY26 operating revenue is a reported financial-year figure, while the annualised run rate is an estimate based on a more recent business pace. The ₹350 crore FY27 figure is a management target, not achieved revenue.
The company initially built its business around automotive manufacturers. Its expansion plans come as India's auto component industry continues to grow. According to the Automotive Component Manufacturers Association of India (ACMA), the sector recorded turnover of ₹7.59 lakh crore in FY26, up 12.7% year-on-year. Supplies to OEMs increased 16.3% to ₹6.63 lakh crore.
From automotive components to drones and data centres
CapGrid now plans to expand into drone manufacturing and data centres, while developing more complex precision-engineered components.
The move could widen its addressable customer base, but these sectors may require different technical capabilities, quality standards and production processes. The company will need to demonstrate that its supplier network and engineering platform can meet those requirements.
Its existing OEM relationships and fulfilment infrastructure provide a starting point. However, the next stage of growth will depend on more than aggregating orders and using spare factory capacity.
The ability to develop specialised components, maintain consistent quality and manage working capital will be important as CapGrid moves into more demanding manufacturing categories.
For Tiwari and his team, the ₹50 crore round is an opportunity to move up the manufacturing value chain. Whether that translates into stronger margins and sustainable growth will become clearer as the company executes its expansion plans.
