Covacsis raises funding from Reliance Industries, Cisco Venture Capital arms to help manufacturing industry
Covacsis Technologies Pvt Ltd is a Mumbai based company that has conceptualized, designed and implemented the Intelligent Plant Framework (IPF) targeting manufacturing industries. The company today has announced that it has raised funding from the venture capital arms of Reliance Industries and Cisco (source). Covacsis had initially raised a seed round of INR 2.45 crores from Blume Ventures. Blume also took part in the current round and other shareholders in the company include IIT Bombay incubator SINE and India Venture Partners. Covacsis will use the funding to enhance its existing product, team and geographical reach. The company will also expand its headcount from current 62 to 75 by end of the year.
Covacsis was founded by Tarun Mishra and Abhijeet Mhatre in 2009. The Intelligent Plant Framework that Covacsis uses captures all micro events across all locations on the plant floor and models them into key and extremely relevant business KPI’s. Covacsis’s proprietary tool, RTPD, measures the economies of the production floor of any industry. After a preliminary check on the various revenue leaks in a production floor, the RTPD then provides information about capital gained or lost due to various operations of the floor.
Over the years, the company has grown and it now has more than 20 customers with the likes of Cipla, Tata Rallis, Godrej Industries and Welspun. Talking about the investment, Tarun says, “”A strategic investor is of greater value for our growth and aspirations to become a global service provider to the manufacturing sector.”
The investment also comes in when the company is looking to move towards becoming a Machine to Machine player which refers to companies building tools that allow both wireless and wired systems to communicate with other devices of the same type, in the broader Internet of Things (IoT) theme. Cisco had also allocated $10o-150 million for IoT and Covacsis falls nicely into the domain. According to the ET report, Covacsis is seeing a topline growth of 300-400% every year and has a target of reaching Rs 100 crore in revenues by FY17. In the current financial year, the startup expects contract booking of Rs 25 crore.
Read our previous interview: Post INR 2.5 Cr investment, Covacsis Looks to Hire Experts Across Disciplines