Noida-based Lal10, a Wholesale cross-border platform for MSMEs, has raised $5.5 million in a pre-Series A equity and debt funding round led by Yuj Ventures (Xander Group), and Beyond Capital Ventures, along with the participation from Spiral Ventures, Singularity Ventures, Asymmetry Ventures, Blacksoil, Panthera Peak, and Pegasus FinInvest.
Prominent angels such as Nitish Mittersain of Nazara Technologies, Bikky Khosla from TradeIndia, Ashok Gudibandla from Notion, Kishore Ganji of Astir Ventures, Suprajit FO, Bob Noyen, Reasoned Ventures, UK-based Insaan Group, and partners at Mckinsey participated in the round.
Founded in 2017 by Maneet Gohil, Sanchit Govil, and Albin Jose, Lal10, which also has its office in New York, has developed a tech-enabled full-stack platform for craft-based MSMEs with over 2,200 craft MSMEs using the application to digitize their inventories for global wholesale and become skilled with contemporary design trends as well as source raw materials directly from factories.
The startup said it will use the raised capital to expand aggressively in markets across the US, Japan, and the Middle East. Apart from expansion, It will scale its tech-based supply chain solutions to buyers and technology innovations for MSMEs, empowering them with design to digitization to global wholesale discovery.
Lal10 in a statement said it aims to reach a $100 million run rate in the next 12 months by focusing on the home textile category.
“Lal10 is building technologies for the next craft revolution”, says Maneet Gohil, CEO of Lal10. “As a brand, we intend to digitize the entire craft industry in India and prepare them for global wholesale. India’s $3.5 billion export GDP in creative produce comes from a handful of production hubs like Panipat, Moradabad, Saharanpur, Jaipur, and Tirupur”, Maneet said.
“India, however, has a production appetite of over $160 billion with tier III and IV production hubs such as Bhagalpur, Pochampally, Maheshwar, and Amroha, which have yet to come on the global map, Maneet adds.
“By building a cross-border platform for empowering Indian craft-based MSMEs across the smaller towns and cities of India, Lal10 is creating a systemic change with their efficient tech-enabled supply chain,” said Sid Yog, Founder of Yuj Ventures, an early-stage investment platform.
According to Lal10, the business-to-business or B2B rural-sourcing market is large, highly disorganized, and geographically disaggregated. But with the advent of inexpensive, ubiquitous internet and smartphones across even the rural corners of India, this sector is ripe for disruption.
“There is an untapped opportunity to leverage technology and software applications to leapfrog the challenges and build a robust global supply chain connecting SMEs with retailers in India and overseas,” it adds.