Ahmedabad, Gujarat February 8, 2023 – B2B manufacturing and supply chain enablement platform for building materials, Magma has raised $3.3 million in its seed round led by General Catalyst, with participation from Accion Venture Lab and Titan Capital. The funding round also saw participation from Unicorn founder angels including Aayush Phumbhra (Chegg), Varun Alagh (Mamaearth) & Srini (BigBasket, Bluestone) and existing investors WEH ventures and All in Capital also doubled down in this round. The company plans to utilise the investment towards expanding their product offerings, cater to the existing factory waitlist & grow the team.
Magma is a global supply-first aggregator in the building materials industry with a mission of helping factories become export ready. The company’s product stack includes factory & supplier specific applications that help partner factories in 1-click procurement of cheaper and quality raw materials leading to better conversion and retention, find global buyers through its AI-based lead generation tool & get access to energy and resources for their day to day production. Magma has already onboarded over 80 factories and is projecting to close its first financial year in March 2023 with an annualised GMV run rate of Rs 150 crores ($18MM USD).
Neal Thakker, Founder and CEO, Magma said “Post covid, factories and suppliers are moving their base from China to Southeast Asia, with India being on the forefront. Additional efforts have been put in by international buyers to diversify their sourcing, further presenting an opportunity for local manufacturers to take a significant wallet share. For a sustainable transition, we must ensure that factories in India are adapting to new practices, responsible production techniques, and using quality raw materials. At Magma, we enable factories not only to cater to global buyers with best quality products but also improve their efficiency and profitability. With the new funding, we are excited to continue serving millions of manufacturers aspiring to be a global player through our platform.”
Anand Chandrasekaran, Partner at General Catalyst, said “We believe that India is emerging as a global manufacturing hub. This is leading to the digitization and upskilling of factories, such as those Magma is empowering in Morbi, Gujarat and other parts of India. We are excited to partner with Magma on their journey to digitize the ceramics industry in India and help their customers compete on a global scale.”
Founded in February 2022, Magma is a B2B supply chain enablement startup operating in the building and construction materials space, acting as a full-stack solution for factories and manufacturers in ceramics, industrial chemicals and sanitary ware verticals for their raw material, energy, inventory, and demand requirements. In August 2022, Magma raised funding of $515K in pre-seed round with participation from WEH ventures, All in capital, PointOne Capital, Angelist India, along with notable angel investors including founders of Groyyo, Fashinza, ManMatters & more. Magma’s vision is to build the modern factory stack for manufacturers in Asia & leverage the China+1 manufacturing shift.
Magma’s suite of tech products acts as a true blue partner for factories across all core avenues of their business – get access to right energy and resources for their day to day production, procure cheaper & quality raw materials leading to better sales & profitability and easy-to-use technology to enable faster growth and standardised factory floors.
About General Catalyst:
General Catalyst is a venture capital firm that invests in powerful, positive change that endures — for our entrepreneurs, our investors, our people, and society. We support founders with a long-term view who challenge the status quo, partnering with them from seed to growth stage and beyond to build companies that withstand the test of time. With offices in San Francisco, Palo Alto, New York City, London, and Boston, the firm has helped support the growth of businesses such as: Airbnb, Deliveroo, Guild, Gusto, Hubspot, Illumio, Lemonade, Livongo, Oscar, Samsara, Snap, Stripe, and Warby Parker. For more: www.generalcatalyst.com.
Daylon Dcruz, Pitchfork Partners
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