B2B manufacturing startup Magma raises $3.3 million in funding led by General Catalyst

Business-to-business (B2B) manufacturing ecommerce startup Magma has raised $3.3 million in seed funding led by General Catalyst and participation from Accion Venture Lab and Titan Capital.

Unicorn startup founders, including Varun Alagh of Mamaearth, Aayush Phumbhra of Chegg, and Srinivas Anumolu, as well as existing investors WEH ventures and All in Capital, also took part in the funding round.

The company said it plans to utilise the funds to expand its product offerings, cater to the existing factory waitlist and hire more people.


Founded in February 2022, Magma provided an ecommerce service 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 $515,000 in a pre-seed round with participation from WEH ventures, All in capital, PointOne Capital, Angelist India, along with angel investors including founders of Groyyo, Fashinza, ManMatters and others.

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 crore.

Magma wants to take advantage of the China+1 manufacturing shift, which is a shift among multinational companies to diversify their manufacturing operations from the world’s second-largest economy.

“Post Covid-19, 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,” said Neal Thakkar, founder and CEO, Magma.

Thakkar said for a sustainable transition, factories in India must adapt to new practices, responsible production techniques, and use quality raw materials.

“We believe that India is emerging as a global manufacturing hub,” said Anand Chandrasekaran, Partner at General Catalyst. “This is leading to the digitization and upskilling of factories, such as those Magma is empowering in Morbi, Gujarat and other parts of India.”