Manufacturing tech startup Fabrication Bazar raises $3M in pre-Series A round

Ben & Gaws Private Limited, which runs manufacturing technology startup Fabrication Bazar, has raised $3 million in pre-Series A funding. funds round led by Physis Capital.

Also participating in the round were Japan-based Venture Capital ICMG and an existing investor. Turning Point Venturesa Gurugram-based angel investment firm.

What does Fabrication Bazar do?

Founded by Dwaipayan Dutta, Fabrication Bazar is a light-asset technology-enabled manufacturing platform for industrial steel products serving over 400 clients across industries.

With its proprietary technology-driven manufacturing process, the startup works with nearly 330 manufacturing suppliers across India to improve production efficiency and reduce lead time by splitting products into multiple parts and processing them simultaneously.

It is also working to digitize its supply chain, providing a platform that centralizes overall management from procurement to quality control and logistics, thereby optimizing the highly unutilized capacity of over 1.5 million MSME manufacturing suppliers in India.

Fabrication Bazar claims to have an extensive network of suppliers spread across India and a growing presence in Southeast Asian manufacturing hubs such as Vietnam. The startup maintains global quality standards while reducing delivery time and cost compared to traditional manufacturers.

Purpose of fundraising

Fabrication Bazar intends to use the funds raised, which include part debt, to further enhance the technology platform to support growth, increase geographic presence in regions outside India, especially the GCC and South East Asia markets, and hire a leadership team.

“The pre-Series A round is a continued validation of our business model and approach to solving the challenges faced by the steel manufacturing industry in India through an asset-light strategy. Our technology-enabled, asset-light manufacturing platform empowers thousands of MSME steel manufacturers across India by improving their capacity utilization, delivering quality products to blue-chip multinational customers, and providing them access to capital,” Dutta said.

“This round helps us further enhance our technology offering and build the team that will take us to the next level. Given the size and potential of the steel manufacturing industry in India and globally, we see significant growth opportunities ahead,” Dutta added.

Fabrication Bazar Market Presence

Fabrication Bazar claims to have grown across its operations in the last 12 months, including its supplier network and customer base in India.

The startup has also been onboarded as a qualified supplier by some of the largest companies in the GCC and is establishing a supplier base in Vietnam to cater to demand in the Southeast Asian region.

With growing customer interest in both the domestic and international markets, the order book has tripled in the last 12 months. Operating EBITDA has been positive since its inception, the statement said.

The industry outlook

India is the world’s second largest producer and consumer of steel, with a total structural steel market estimated at over $20 billion by 2030, with applications in sectors such as construction, power, FMCG, transmission, telecom, buildings, pharmaceuticals, petrochemicals, oil & gas, ethanol, manufacturing, etc.

However, the current steel manufacturing market is highly concentrated and over 90% of manufacturers are MSMEs that lack technology, finance and access to large customers, leading to massive underutilization of manufacturing capacity in India.

As a result, most businesses rely on large, traditional manufacturers with fixed capacities, leading to long lead times and high costs. Fabrication Bazar, through its technology-driven platform, bridges the gap between these customers and underutilized manufacturers across India.