Of this funding, $4 million was in the form of equity while the rest was in the form of debt.
Spiral Ventures, Singularity Ventures, Asymmetry Ventures, Blacksoil, Panthera Peak and Pegasus FinInvest also participated in the round.
Nitish Mittersain of , Bikky Khosla of TradeIndia, Ashok Gudibandla of Notion and Kishore Ganji of Astir Ventures, were among the angel investors who also invested in the funding round.
The company said it will use the capital to expand in the United States, Japan and the Middle East and to expand its technology-based supply chain solutions to buyers and technology innovations for micro, small and medium-sized enterprises (MSMEs).
“Looking at the potential of the MSME industry, Lal10 aims to achieve a run rate of $100 million over the next 12 months with a focus on the home textiles category,” he said. .
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Founded in 2017 by Maneet Gohil, Sanchit Govil and Albin Jose, Lal10 is a comprehensive technology platform for artisanal MSMEs with over 2,200 artisanal MSMEs using the app to digitize their inventory for global wholesale and upskill themselves in contemporary design. trends and sources their raw materials directly from the factories.
“Lal10 develops technologies for the next craft revolution. As a brand, we intend to digitize the entire cottage industry in India and prepare it for global wholesale,” said Maneet Gohil, its Managing Director.
India’s $3.5 billion export GDP of creative products comes from a handful of production hubs like Panipat, Moradabad, Saharanpur, Jaipur and Tirupur. India, however, has a production appetite of over $160 billion with Tier III and IV production hubs such as Bhagalpur, Pochampally, Maheshwar and Amroha yet to be on the global map, it said. -he adds.
The company raised its funding round in March 2020 from US-based impact investing platform Sorenson Impact and a few angel investors.
“By building a cross-border platform to empower Indian artisanal MSMEs in small towns across India, Lal10 is creating systemic change with their efficient technology-driven supply chain,” said Sid Yog, Founder Yuj Ventures, one of the first- stage investment platform.
According to Lal10, the business-to-business or B2B rural supply market is large, highly disorganized and geographically disaggregated. But with the advent of cheap and ubiquitous internet and smartphones even in rural corners of India, this sector is ripe for disruption. There is an untapped opportunity to leverage technology and software applications to leapfrog challenges and build a strong global supply chain linking SMEs to retailers in India and abroad.