Accion Venture Lab and Titan Capital too participated in Magma’s $3.3 Mn seed funding round
Of this $3.3 Mn investment, $2.8 Mn is equity funding while the remaining $500K is debt
WEH Ventures, All in Capital, Aayush Phumbhra from Chegg, Varun Alagh from Mamaearth and Srini from BigBasket, also participated in the funding round
B2B manufacturing platform Magma has raised $3.3 Mn in a seed funding round led by General Catalyst along with participation from Accion Venture Lab and Titan Capital.
Of the $3.3 Mn funding, $2.8 Mn is equity investment while the remaining $500K is debt funding.
Existing investors WEH Ventures, All in Capital, and angel investors including Aayush Phumbhra from Chegg, Varun Alagh from Mamaearth and Srini from BigBasket, also participated in the funding round.
Magma will use the fresh capital for expanding product offerings, business operations and factory stack. It also plans to expand its team.
The development comes months after Magma secured $515K in Pre-Seed funding from WEH Ventures.
All in Capital, PointOne Capital, Angellist India, Revant Bhate (from Man Matters), Subin Mitra and Pratik Tiwari ( from Groyyo), and Pawan Gupta and Abhishek Sharma (from Fashinza) also participated in the Pre-Seed funding round.
Founded in February 2022 by Neal Thakker, Magma is a B2B manufacturing platform that helps factories with raw materials, generate global demand and supply chain services.
The startup’s manufacturing platform manages a factory app that helps partnered factories increase their demand and get access to international buyers, raw materials and AI-powered lead generation tools.
“Post covid, factories and suppliers are moving their base from China to Southeast Asia, with India being at the forefront. Additional efforts have been put in by international buyers to diversify their sourcing, presenting an opportunity for local manufacturers to take a significant wallet share,” Thakkar said.
The startup claims to have boarded more than 80 factories to date and is anticipating to clock an annualised GMV run rate of INR 150 Cr in the financial year 2022-23.
In India, it competes with B2B manufacturing and construction marketplaces OfBusiness and Infra.Market.
According to a Global data report, the country’s construction market size was pegged at $609.8 Bn in 2021. The industry is anticipated to achieve an average annual growth rate of more than 6% AGR during 2023-2026.