Bengaluru-based startup Leanworx has raised ₹8.3 crore (approximately $1 million) in seed funding to enhance its innovative solutions for the manufacturing sector. The funding round was led by YourNest Venture Capital, which invested ₹6.5 crore, alongside an angel investment group that contributed the remaining ₹1.5 crore. The investment is part of the YourNest-SanchiConnect Velocity Program 2024, an accelerator initiative designed to support high-growth startups with strategic funding, mentorship, and market access.
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Founded in 2017 by D. Srihari, Bhagavan S. K., and Dasarathi G. V., Leanworx is an AI-based machine monitoring system which delivers real-time actionable data to manufacturing plants. Compared to traditional methods of collecting data, which may take 24 to 36 hours, Leanworx’s technology can send crucial information to the decision-makers in less than a minute. This brings great efficiency improvement in dealing with critical inefficiencies in the manufacturing sector, which has always been plagued by obsolete processes.
The company’s innovative plug-and-play IoT solution is designed to enhance machine utilization, which currently ranges from 30% to 50% due to reliance on conventional paper-based systems. Near-instant, data-driven insights offered by Leanworx empower managers to make informed decisions that can optimize operations and increase productivity.
This also spoke a lot in the confidence and reassurance which the Venture Partner at YourNest Venkat Raju had as he remarked, “We are truly excited about our investment decision in Leanworx as they align to our vision of supporting scalable Industry 4.0 solutions and have a well-proven plug-and-play IoT system that overcomes critical inefficiencies found in manufacturing lines today. I was impressed with their remarkable early traction coupled with strong sales funnel by industry leaders.”.
A good market opportunity exists for Leanworx. The company estimates that, according to data the company has culled, more than three lakh metalworking machines and more than nine lakh machines exist in the fast-moving consumer goods sector of India. On the other hand, in comparison, the Industry 4.0 market globally is a huge potential market of 60 times more. In its estimates, Leanworx thinks of an annual ₹3,000 crore turnover opportunity in India alone. Similarly, worldwide, it might touch ₹1.8 lakh crore annually.
The fresh capital raised will be used mainly for scaling marketing efforts and lead generation in India and Southeast Asia besides advancing product development, including hardware and software certification. This strategic focus on market expansion and product enhancement is critical for Leanworx as it looks to strengthen its foothold in the competitive landscape of manufacturing technology.
With digital transformation gaining rapid acceptance within the manufacturing sector, Leanworx is already at the forefront with operational solutions to make things better and improve efficiency. Supported by good investors and clear growth strategy, Leanworx will definitely take many giant steps forward in bringing about revolutionary change in manufacturing through its innovative technologies.
In conclusion, the recent funding round for Leanworx highlights the growing interest in Industry 4.0 solutions and positions the startup for substantial growth in a rapidly evolving market. Its commitment to enhancing manufacturing processes through real-time data analytics will help it meet the demands of modern industry and drive significant improvements in productivity.
