The round also saw participation from investors, including Raise Financial Services founder Pravin Jadhav and the JK Group family office.
The Noida-based firm plans to use the funds to expand into multiple product categories while strengthening its presence in existing segments.
Founded in 2019 by Raghav Gautam and Jasvivek Reehal, Grid OS specialises in providing end-to-end product solutions for manufacturing, covering design concepts, research, production, and deployment. The company operates in the business-to-business (B2B) smart electronics space.
“Our focus is on AI driven smart electronic gadgets. However, the challenge with conventional supply chains, particularly those based in China, is the extensive back-and-forth required for such products which increases product development and manufacturing turnover cycles. This often prevents Indian companies from quickly scaling to mass manufacturing,” Gautam told ET.
He previously worked as an analyst at JPMorgan Chase & Co.
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The company manufactures critical components at its own facilities while outsourcing some production to contract manufacturers.Recently, it secured a Rs 100 crore contract with fintech major PhonePe for the mass production of its Soundbox technology. Grid OS has also signed contracts in the automotive sector, providing vehicle analytics solutions to original equipment manufacturers (OEMs) using its hardware product stack.
Prior to this funding round, the startup raised $200,000 through convertible notes from All In Capital in October 2023.
This funding comes as India’s electronics manufacturing sector is undergoing significant transformation, driven by the Make in India initiative and the China Plus One strategy adopted by many consumer brands.
Manufacturing unicorn Zetwerk announced last year that it had earmarked a Rs 1,000-crore investment to expand its electronic manufacturing capacity across IT hardware, televisions, mobile phones, and hearable and wearable product segments.
