Magma raises funding yet again, securing $5 million in its Series A round led by Capria Ventures. The round also saw participation from Avinya Ventures, Sanjiv Rangrass, and returning investors like General Catalyst
, Accion Venture Lab, and WEH Ventures. This latest round takes Magma’s total funding beyond $8.3 million. The Ahmedabad-based startup, founded in 2022 by Neal Thakker, plans to use the capital to scale its vertically integrated ecosystem. This will include deeper investment in raw material sourcing, backward integration, sustainable energy transitions, and waste management systems for Indian manufacturing firms.
Positioning itself as the “infrastructure backbone” of India’s industrial supply chains, Magma aims to become the operating system for factories. Already operationally profitable with a Rs 250 crore revenue run rate, the company serves over 250 industrial clients across ceramics, chemicals, and packaging. With this new capital injection, Magma is targeting a Rs 1,000 crore revenue run rate within the next 24 months.
By embedding itself deeply within the value chain, from sourcing raw materials to managing recycling and renewable power, Magma is not just facilitating procurement—it’s redefining it. This Series A funding will empower Magma to further modernize India’s SME manufacturing segment, a critical sector facing pressure from global supply chain disruptions.
The startup has plans to expand into new product categories such as laminates, paints, and PVC, while also exploring waste valorisation as a revenue stream. With increased capital and industry trust, Magma is on a mission to reshape the country’s industrial future.
1. Understanding Magma’s Industrial Ecosystem
1.1 What Magma Offers India’s Manufacturing Sector
Founded in 2022, Magma has emerged as a transformative player in India’s B2B industrial ecosystem. It enables factories to source high-quality, customized raw materials, switch to renewable energy, and adopt biomaterials. The company also focuses on sustainable industrial waste management. Unlike traditional B2B platforms, Magma operates through a vertically integrated model. This means it doesn’t just connect suppliers and manufacturers; it becomes part of their supply chain.
1.2 Deep Supply Chain Integration
Magma’s unique value proposition lies in its ownership of the value chain. This allows it to maintain tight control and offer consistent quality across raw materials, logistics, green energy adoption, and recycling. By embedding deeply into industrial operations, it supports rapid scaling for manufacturing firms.
2. Business and Revenue Model
2.1 Revenue Streams
Magma earns through a combination of procurement-as-a-service, raw material sales, and value-added sustainable solutions. It manages end-to-end logistics, ensuring procurement agility and reliability. These services bring in consistent revenue from long-term industrial partnerships. The startup is already operationally profitable, recording a revenue run rate of Rs 250 crore.
2.2 Clientele and Industry Segments
The company currently works with over 250 clients in sectors such as ceramics, chemicals, and packaging. These industries demand tailored material solutions and operational efficiency—Magma delivers both with its robust backend infrastructure.
3. Funding Journey and Financial Trajectory
3.1 Timeline of Capital Infusion
Magma raises $3.3 million in its initial funding round in 2023. Backers included General Catalyst, Titan Capital, and WEH Ventures. In 2025, the startup secured $5 million more, with Capria Ventures leading the round. Other participants included Avinya Ventures and Sanjiv Rangrass, alongside returning investors.
3.2 Use of Latest Funds
Magma raises $5 million funding for B2B industrial growth. With the recent $5 million, Magma plans to:
- Strengthen core factory offerings
- Expand backward integration capabilities
- Invest in technology for procurement agility
- Broaden product portfolio (laminates, paints, PVC)
- Develop waste valorisation as a service
3.3 Revenue Ambitions
The company aims to grow its revenue from Rs 250 crore to Rs 1,000 crore within two years. This will be powered by deeper market penetration and scaling with SME manufacturers, who are facing a pressing need for modernisation amid global economic shifts.
4. Founding Vision and Leadership
4.1 Neal Thakker’s Vision
Magma’s founder, Neal Thakker, brings a fresh yet grounded vision to India’s B2B industrial sector. His approach emphasizes end-to-end control, not just surface-level supply chain interaction. Thakker aims to make Magma the go-to operating system for Indian factories, transforming how industries source and scale.
4.2 Strategic Insights from Investors
Surya Mantha, Managing Partner at Capria Ventures, highlighted Magma’s ability to address a $36 billion opportunity in India’s under-served supply chain sector. Their investment signals strong confidence in Magma’s ability to build infrastructure resilience for Indian manufacturing.
5. Market Trends and Strategic Expansion
5.1 Rising Need for Industrial Efficiency
With increasing global supply chain volatility, Indian factories, especially SMEs, are under pressure to become more efficient and self-reliant. Magma’s model addresses this head-on. It integrates green energy, customized raw materials, and sustainable practices into the manufacturing lifecycle.
5.2 New Product Lines and Services
Magma is expanding its offerings to include:
- Laminates
- PVC
- Industrial paints
- Coatings
- Waste valorisation systems
These additions will support a wider range of factories in managing production, sustainability, and operational risks.
6. Why This Funding Matters
6.1 Capital Meets Execution
Unlike many startups, Magma has shown profitability before raising Series A. The funding is not for survival but for strategic scaling. This gives it a competitive edge in building long-term partnerships with industrial clients.
6.2 Creating Sustainable Supply Chains
With deeper integration and technology upgrades, Magma can make supply chains more resilient and eco-friendly. This resonates with India’s larger push towards green manufacturing and Atmanirbhar Bharat (self-reliant India).
7. Learning for Startups and Entrepreneurs
- Backward Integration Works: Owning the supply chain gives startups greater control, quality assurance, and long-term viability.
- Profit Before Scale: Achieving profitability before major fundraising adds credibility and investor trust.
- Solve Real Problems: Magma’s success lies in addressing deep-rooted issues in industrial procurement and sustainability.
- Diverse Revenue Channels: Combining raw material sales with green energy and waste management creates a multi-stream model that scales efficiently.
- Customer-Centric Flexibility: A value-chain-first approach that stays agile to client needs is a competitive advantage.
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