[Exclusive Interview] This One-Stop Destination For Manufacturers Offer 20 Lakh+ Components | Revenues Increase 7X

Recently, we interacted with Sonam Motwani, CEO and Founder of Karkhana.io – a unique startup that aims to provide a seamless, efficient & hassle-free solution for all manufacturing needs.

Here are the interview highlights:

1. How did you come up with the name Karkhana.io? And how did you decide to enter into this space?

The origin of the name Karkhana.io is deeply rooted in the cultures of India and the broader South Asian region. “Karkhana” is a word from Hindi and Urdu that translates to ‘factory’. We chose this term to represent the raw power and complexity of manufacturing operations in India. Our journey into the B2B manufacturing sector was inspired by personal experiences. During my tenure at Procter & Gamble, I observed the inherent inefficiencies in the Indian manufacturing industry. Finding reliable suppliers capable of maintaining high-quality standards was an immense challenge. This real-world experience inspired me to delve deeper into the manufacturing industry, seeking to understand and tackle the prevailing issues.

2. Who would you say is your customer and what is the value proposition that you offer to them?

Karkhana.io’s customer base spans mid to large size companies in electric mobility, medical equipment, consumer electronics, robotics and aerospace segments seeking custom manufacturing solutions. From small batches to high-volume production, we offer a broad spectrum of manufacturing processes, including CNC Machining, Sheet Metal, Fabrication, Injection Moulding, Electronics Manufacturing, Forging, and Casting. One of our key value propositions is end-to-end project management. Our clients can bypass the tedium of supplier discovery and coordination with multiple suppliers, as we ensure all their manufacturing needs till delivery are comprehensively met.

3. How much funding have you raised in the past? What is your strategy moving forward in terms of fundraising?

We have successfully raised $3.5 million to date from prominent and supportive investors such as Vertex Ventures & Aureolis Ventures. Their belief in our mission has played a vital role in our journey so far. Looking towards the future, we are excited to be planning our Series A fundraising round that is dedicated to a dual growth strategy. Firstly, we aim to expand our reach to markets beyond India since the world is increasingly looking to India as a global manufacturing hub and we’re poised to facilitate the manufacturing capabilities of tomorrow at scale. Secondly, we aim to significantly strengthen our tech platform. Our mission continues to be transforming India’s unorganised & informal sector into a highly systematic & digital industry. The upcoming funding will enable us to invest more deeply in this transformative digital technology, refining & optimising our platform to provide even greater value to our clients.

4. Manufacturing being a largely unorganised sector, what were some of the challenges you faced while setting up Karkhana.io?

Establishing Karkhana.io was not devoid of challenges, given that manufacturing is a largely unorganised sector. Ensuring smooth procurement for different manufacturing components requires significant effort and constant communication. One particular hurdle we grappled with was the lack of speed and standard process for obtaining quotations from suppliers. This lack of standardisation often led to unnecessary delays and inconsistencies and there’s a need for persistent follow-up via calls and emails to get updates on parts. Another significant challenge that we encountered was the prevalent issue of over-commitment and under-delivery. Due to poor planning and inefficient project management prevalent in the sector, the delivery often fell short of the commitments made. This discrepancy not only disrupts the entire manufacturing timeline but also jeopardises the trust between partners. The absence of streamlined processes and transparency only exacerbates these challenges. As we continued to experience many on-ground challenges, we invested significantly in building tech to solve some of them. Adoption of technology in traditional industries tends to take many iterations and so we are constantly & consistently working hard and solving challenges with real-world solutions as we grow.

5. Are there any competitors in your industry? Do you account for current or potential competitors that might enter this niche?

At present, Karkhana.io operates within a relatively niche sector, sharing the market space with a handful of competitors, such as Zetwerk. Despite the emergence of various players, several have pivoted towards alternative business models, providing us with a unique edge in the industry. Our unparalleled approach towards the manufacturing domain, coupled with our commitment to creating tech-driven solutions, enables us to be significant disruptors in this sector. One aspect that truly distinguishes us in this competitive landscape is our unique offerings. We specialize in providing comprehensive solutions, encompassing ‘build to print’ services as well as complete contract manufacturing solutions. This dual-service approach allows us to cater to a broad range of client needs, all under one roof. Furthermore, we take immense pride in being the preferred manufacturing partner for our clients. Our unwavering dedication to delivering high-quality services has garnered us a loyal client base that consistently relies on our expertise. In their eyes, Karkhana.io is not just a service provider, but a trusted partner in their manufacturing journey. We believe this rapport and trust with our clients further strengthens our position and sets us apart in this competitive market landscape.

6. How has the company fared last year? Where do you see the brand going in the next 5 years?

The previous year served as a pivotal period in our journey, witnessing an impressive seven-fold increase in our manufacturing revenues compared to the year before. Fueled by this promising trend, we set our sights on achieving a 10x growth by the close of the current financial year. Peering into the future, our five-year strategy is geared towards consolidating our standing as a market frontrunner in the B2B manufacturing arena and leveraging our technological prowess to drive unprecedented disruption and efficiency.