CapGrid Solutions, an AI-powered B2B manufacturing platform, has raised US$4.87 million, or ₹462.8 million, in a pre-Series B funding round led by Hero Enterprise Partner Ventures. Existing investors Nexus Venture Partners, Anicut Capital, Axilor Technology Fund, and investor Amit Jain also participated. The company issued 2,888 compulsorily convertible preference shares at ₹160,263 per share to raise the fresh capital.
Funding Round Structure and Valuation
Hero Enterprise Partner Ventures led the round with ₹383 million, while Axilor Technology Fund and Anicut Capital invested ₹30 million each. Nexus Venture Partners and Amit Jain contributed ₹10 million each. Entrackr estimated the company's post-money valuation rose over 50% to ₹4.30 billion, or US$46 million, compared with its Series A round of US$5 million led by Anicut Capital in February 2025.
Shareholding and Founders
Following the pre-Series B allotment, Nexus Venture Partners remained the largest external shareholder with an 18.08% stake. Anicut Capital held 16.40%, and Axilor Ventures held 11.94%. Co-founders Dheeraj Kumar Tiwari and Himanshu Singh Raghuvanshi each retained an 18.63% stake, reflecting continued support from early institutional backers and shared ownership among the founding team.
Company Overview and Business Model
Founded in July 2020 by Dheeraj Kumar Tiwari and Himanshu Singh Raghuvanshi, CapGrid is an AI-powered platform serving industries such as automotive, agricultural equipment, earthmoving equipment, aerospace, oil and gas, consumer durables, and electric vehicles. The company supports businesses with their manufacturing and sourcing requirements. It operates in a market where manufacturers increasingly seek technology-driven solutions to improve procurement processes, supplier management, and operational efficiency.
Market Opportunity and Growth Drivers
Manufacturers across automotive, aerospace, agricultural equipment, oil and gas, and electric mobility are increasingly adopting digital platforms to manage complex sourcing and supplier networks. CapGrid's AI-powered approach addresses pain points in procurement, supplier discovery, and operational efficiency. The broader push toward industrial digitalization has created demand for platforms that can reduce costs and improve supply chain visibility.
Financial Performance
CapGrid reported significant revenue growth in FY25, with operating revenue increasing approximately 2.1 times to ₹2.09 billion from ₹992 million in FY24. Its net loss declined marginally to ₹259.2 million during FY25. The company has not yet filed its financial statements for FY26, so its latest annual financial performance is not available through those filings.
Use of Funds and Strategic Focus
According to regulatory filings, CapGrid will use the fresh capital to support business expansion, drive growth, and meet additional capital requirements. The company has not publicly disclosed a detailed allocation of the funds. With this pre-Series B investment, CapGrid plans to strengthen its operations as it serves businesses across multiple industrial sectors.
Investor Confidence and Market Position
The participation of Hero Enterprise Partner Ventures as a new investor signals confidence in CapGrid's business model and growth trajectory. Existing investors Nexus Venture Partners, Anicut Capital, and Axilor Technology Fund also reinforced their commitments. Their continued backing highlights the company's ability to attract both new and returning capital in a competitive funding environment.
The pre-Series B round marks another step in CapGrid's efforts to scale its AI-powered manufacturing platform. The company's strong revenue growth in FY25 and continued support from existing investors highlight its momentum in the industrial supply chain ecosystem. As CapGrid prepares for further expansion, the fresh capital will help address its immediate capital requirements and position the company for future growth.