SaaS unicorn Zoho invests in two manufacturing firms in India
Known for its suite of business software solutions, the Chennai-based firm has invested in Karuvi and Yali Aerospace to boost deeptech manufacturing capabilities in India.
Chennai based SaaS firm has invested an undisclosed amount in manufacturing firms Karuvi and Yali Aerospace as a part of its ongoing initiative to enhance deeptech manufacturing capabilities in India.
"Manufacturing and technology capabilities are critical to a nation's economic prosperity. For our country to gain in this area, conscious attention to building expertise that is currently scarce becomes necessary. Karuvi and Yali are startups that are not only innovating in their respective fields, but are also creating jobs and bringing technical skillset to smaller towns and villages, which aligns with our philosophy," said Sridhar Vembu, CEO and Co-founder, Zoho Corp.
Founded in 2022, Karuvi is a mechatronics startup that aims to manufacture power tools within India. The Chennai-based firm has launched 10 tools, including drills, power saws, and angle grinders. It focuses on integrating the latest advancements in motor technology, material sciences, and electronics into their products.
"Karuvi was started with the goal to design and develop consumer and industrial power tools and other mechanical systems indigenously. We have chosen to establish our manufacturing facility in a rural setting in Tenkasi with the aim to train and absorb local talent into factory operations, and hope to generate employment for over 150 people in the next two years. We will be adding more tools to our portfolio and plan to have at least 30 products by the end of 2025. We are also working to create a network of suppliers so that we can source all components locally," said MSD Prasad, CEO, Karuvi.
The 40-member team has plans to open a manufacturing unit in Tenkasi, Tamil Nadu this year.
Founded in 2022 following the central government's drone import ban, Thanjavur based Yali Aerospace creates drones for civil, military use, and healthcare. Their current model delivers emergency medical supplies over 300 kilometers in 120 minutes.
Yali Aerospace aims to connect remote healthcare centers with hospitals for emergency medicine and organ transport using drones. The startup also manufactures an autonomous docking station for quick response delivery, long-range operations, and battery swaps.
"Aerospace technology can help overcome infrastructure challenges and make healthcare accessible for those in remote areas. This is the gap that we hope to overcome with Yali drones. We are in talks with the DGCA to get approvals to start a pilot project to create a network between hospitals, especially in the hills where transportation is a challenge," said Dinesh Baluraj, CEO and Founder, Yali Aerospace.
Currently, Yali Aerospace's drones can carry a payload of up to 7 kg, with a new model in the works to handle 50 kg of payload. It also uses 3D printing and sources 80% of components locally, aiming to fully localise production within the next five years.
Edited by Megha Reddy