Ahmedabad: Magma, Asia’s leading B2B Manufacturing platform that enables factories to go global, has announced that it closed its first operational year with annualised revenue run rate of INR 200 crore. The company has emerged as a leading player, having partnered with over 100 industries in a span of just one year. It boasts strategic tie-ups with the Ceramic, Polypack, and Energy Association of India to bolster the growth of the SME manufacturing ecosystem.
- Expecting to double growth this financial year
- Acquired more than 100 industries in the last 6 months
- Expanded operations across 12 states in India
Magma works with factories across all core avenues of their business with a vision of providing access to consistent energy and logistics for their day-to-day production, procuring cheaper & quality raw materials leading to better sales & output and easy-to-use technology to enable faster growth, thereby upskilling factories in Asia to compete well with their global counterparts.
The company has experienced remarkable 5x growth over the past year, which has enabled it to become a supply chain partner to large enterprise brands such as Kajaria, Asian Granito India, Simpolo and Varmora. In a highly fragmented industry plagued with very little tech adoption, Magma had also recently announced diversification of their tech stack, which includes a suite of five products that provides a factory with global buyer options, optimises production, monitors energy consumption, track high-value cargo and procure high quality, low-cost raw materials with a single click while driving profits and expanding the manufacturer’s reach. Additionally, Magma has strengthened its supply chain across Asia by setting up on-ground teams and opening offices in key cities, including the Morbi region in Gujarat, the world’s ceramic capital.
Over the last 12 months, Magma has partnered with over 50 new suppliers, including leading conglomerates from India and collaborated with them for end-to-end downstream distribution. According to Magma’s Founder & CEO Neal Thakker, “A lot has been talked about the China+1 manufacturing shift, but very little about whether these factories are actually ready. You are looking at a set of manufacturing units in India that are underutilised, with inefficient production cycles and procurement processes along with a lack of capital flow in their day-to-day systems. For factories to thrive and leverage the macro shift, a lot needs to be done to ensure we upskill these factories and solve problems on the ground. We are very excited to see factories powered by Magma unlock their true export potential as the world looks to de-risk their supply chains out of China.”
Magma’s ability to achieve such remarkable growth and expansion in a challenging environment is a testament to its commitment to execution, scalability, and frugality. “When we started, Magma had its bottleneck: a waiting list of factories. As a company, these were early signs for us that showcased the high-velocity nature of the industry at large and how supply chains and propositions need to be re-architected to build the next generation of manufacturing. Our focus continues expanding our share in the wallet with our factories, and this has allowed us to venture into different verticals – logistics being the most recent, to ensure we are able to serve them by providing control and visibility of the wider value chain,” said Ashish Jani, Chief Operating Officer, Magma.
Since its establishment in 2022, Magma has witnessed close to 4x QoQ growth and is expected to grow by more than 2x in the coming financial year. One of the key metrics the company tracks is the working capital to margin ratio, as approximately 70% of Magma’s business happens without any exposure to working capital. The company has emerged as a market leader in the B2B manufacturing space and will continue to cement its position by expanding into new demand and supply hubs and building further strength in this segment.
Neal Thakker founded magma to unlock India’s manufacturing capabilities. The company has so far raised $3.3 million in capital from marquee investors, including General Catalyst (early investors at Stripe, Snap, Airbnb & Canva) & Accion Venture Lab.
