Magma, a B2B manufacturing platform, receives a $3.3 million seed investment from General Catalyst

• ByStartup Story Team     |    February 8, 2023

Building materials B2B manufacturing and supply chain enablement platform Magma has secured $3.3 million in a seed round, which was headed by General Catalyst and included Accion Venture Lab and Titan Capital.

The Unicorn founding angels Aayush Phumbhra (Chegg), Varun Alagh (Mamaearth), and Srini (BigBasket, Bluestone) participated in the investment round as well . WEH Ventures and All in Capital, two previous investors, increased their stake in this round.

The firm, which was founded in February 2022, intends to use the funding to hire more employees, meet the demands of the waiting list at the plant, and expand its product line.

The company’s product line comprises apps tailored to manufacturers and suppliers that help partner firms discover worldwide customers, procure raw materials, and access energy and resources.

“Factories and suppliers are relocating from China to Southeast Asia as a result of COVID, with India leading the way. International buyers have made further efforts to diversify their procurement, which presents local manufacturers with a potential to capture a sizeable market share, according to Neal Thakkar, founder and CEO of Magma.

The first financial year of Magma, which has more than 80 manufacturers on board, is expected to end in March 2023 with an annualised GMV run rate of Rs. 150 crores ($18 million).

“We think that India is becoming a major base for manufacturing worldwide. As a result, manufacturers like those Magma is enabling in Morbi, Gujarat, and other regions of India are becoming more digital and skilled. Anand Chandrasekaran, partner at General Catalyst, said: “We are thrilled to join with Magma on their drive to digitise the ceramics and industrial chemicals business in India and assist their clients compete on a global basis.

Magma secured $515K in pre-seed investment in August 2022 with the help of WEH ventures, All in capital, PointOne Capital, Angelist India, and a number of other illustrious angel investors, including the founders of Groyyo, Fashinza, ManMatters, and other startups.

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