Karkhana.io Raises $6.3 Million in Series A Round to Digitize Manufacturing in India

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In the world of manufacturing, micro, small, and medium enterprises (MSMEs) often struggle with challenges like sourcing components, identifying trustworthy suppliers, and streamlining the production workflow. Founded in 2018 by Sonam Motwani, Karkhana.io emerged as a solution to bridge the existing gaps in custom manufacturing for MSMEs. The platform introduced a digital ecosystem that streamlined the entire sourcing and contract manufacturing process. Building on this momentum, Karkhana.io has recently secured $6.3 million in a Series A funding round led by Arkam Ventures and Susquehanna Asia Venture Capital, with participation from existing investors Vertex Ventures Southeast Asia and India.

“India is emerging as a viable manufacturing destination, leveraging its advantages in value-added precision industries, low-cost skilled labour and supportive government policies,” Bhavani Rana, investment advisor at Susquehanna Asia Venture Capital, said.

The capital gained through the funding will be used for strategic initiatives such as the expansion of Karkhana.io’s supplier base, development of the electronics supply chain, and scaling of efforts for market growth in the United States and Europe.


Sonam Motwani, founder and chief executive at Karkhana.io, said, “This funding extends beyond growing our platform; it’s a dedication to fortifying India’s MSME ecosystem. We want to create a significant impact in sectors with expansive growth potential, addressing surging demand and propelling Karkhana.io to redefine the landscape of the Indian manufacturing industry.”

With a supplier network consisting of more than 400 MSMEs, Karkhana.io serves 90 OEMs for their contract manufacturing needs. Heading forward, the platform aims to support over 3,000 MSME suppliers over the next three years.

Our investors’ trust underscores our commitment to revolutionise manufacturing through technology, offering flexible and scalable solutions. This funding extends beyond growing our platform. It’s a dedication to fortifying India’s MSME ecosystem,” Motwani said.

This successful Series A funding round follows earlier round of $1.5 million in a seed round in January 2021 led by Vertex Ventures Southeast Asia & India along with various angel investors, according to an article published in Entrackr.

On a mission to transform MSME manufacturing

Karkhana.io is an online manufacturing platform that transcends traditional manufacturing processes. The platform which is led by Sonam Motwani has leveraged technology to streamline the manufacturing supply chain. Its digital product which offers a unique and seamless experience for custom manufacturing, catering to both small and large-scale production. With a network of over 400 MSME suppliers, Karkhana.io acts as a manufacturing OS, providing manufacturing feedback, pricing, and shorter turnaround times compared to conventional methods.

Team behind Karkhana.io
Team behind Karkhana.io

“Our most unique offering is the digital product that we have spent the last few years building. Today, this product provides a unique and seamless experience for anyone looking to manufacture. From small scale to large volume, product assembly to product localization, we provide flexible and scalable solutions via our tech-enabled marketplace for any custom manufacturing.” Said Motwani when asked about Karkhaana.io.

The platform caters to a diverse range of industries, offering services such as CNC machining, sheet metal fabrication, forging, casting, injection moulding, vacuum casting, and electronics integration. Karkhana.io stands out as a one-stop shop, providing end-to-end solutions, including sourcing, procurement, project management, and logistics. In just five years, it has become a reputable manufacturing solutions provider, consistently meeting client needs and earning trust in custom manufacturing and procurement.

Sonam Motwani: The Brain Behind Karkhana.io

Sonam Motwani is an Aerospace Engineer from IIT Bombay and started her journey into the world of hardware during her undergraduate years. Her first undergraduate project which involved the design of electric race cars for Formula Student UK, helped her to find her passion for hardware and set the stage for her future success.

Sonam Motwani- Founder and CEO at Karkhana.io
Sonam Motwani- Founder and CEO at Karkhana.io

In the latter half of 2015, Sonam joined Procter & Gamble’s technology division where she contributed to developing solutions aimed at optimizing packing lines for haircare products and later transitioned to the manufacturing of sanitary napkins. This corporate experience provided her with valuable insights into the challenges of product development, sourcing, and deployment within large companies. Working closely with vendors in China and India, Sonam gained an understanding of the challenges present in the manufacturing ecosystem.

Sonam says, “At P&G, we worked with foreign suppliers, but when we tried to look out for suppliers in India, we saw a huge gap in the market and the sector. I realised the problems I had faced earlier were not limited to a student but were problems even for big manufacturing companies.”

Deeply analyzing the industry, Sonam recognized a significant unaddressed gap and saw an opportunity to streamline manufacturing processes. Spending her weekends engaging with hardware startups, design firms, and manufacturing suppliers across Mumbai, Bangalore, and Pune, she laid the groundwork for an online platform that could simplify manufacturing.

Powered by this determination, she took a bold step, resigning from her job to officially establish Rolling Cube in April 2016. Later on, in 2018, she went on to develop Karkhaana.io.

The Passion Behind Karkhana.io

Sonam Motwani’s journey from an aerospace engineer to the founder of Karkhana.io is rooted in her passion for hardware and a keen understanding of manufacturing challenges. After recognizing the lack of standardization and transparency in procurement processes within the unorganized manufacturing industry, Sonam was inspired to create a solution. The digital platform of Karkhana.io addresses challenges such as slow and inconsistent quotations, delays, and communication issues.

“One of the most significant impediments in the manufacturing sector that we effectively address is the lack of standardization and transparency in procurement processes. In the largely unorganized manufacturing industry, obtaining quotations from suppliers can be slow and inconsistent, leading to delays and communication challenges.” Said Sonam Motwani in an interview with Media Brief.

Karkhana.io’s unique offering lies in its ability to simplify manufacturing processes, providing a single dashboard for companies to access vetted suppliers and overcome inefficiencies. Sonam envisions digitizing the manufacturing ecosystem, democratizing the process, and making it accessible to everyone. The platform’s focus on scalability includes automating the pricing engine and introducing online design for manufacturing feedback, aiming to revolutionize interactions in the manufacturing industry and accelerate hardware development cycles.

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