As a Venture Capital fund, we are fueled by the thrill of discovering the next game-changer. We hunt for visionary founders who possess the rare ability to shake up industries, have a different prespective and clearly understand where the puck is headed. Nitesh and Subhajit, the minds behind Leumas, are one of those exceptional gems. From the moment we encountered Leumas, we knew it was extraordinary, destined with the potential to disrupt manufacturing.
Today, we’re beyond thrilled to announce our participation in Leumas’s Rs 7 crore Pre-Seed raise, joining forces with Capital 2B and Anicut Capital.
But let’s be clear, Leumas isn’t your average run-of-the-mill manufacturing company. It’s a cutting-edge, on-demand tech marvel that caters to nutraceuticals, cosmetics, and pharmaceuticals. Imagine a battalion of cloud-controlled nano-factories, powered by Cyber Physical System tech, transforming raw materials into top-notch finished goods with precision, even at the last mile. It’s akin to a scene ripped from the pages of an awe-inspiring sci-fi masterpiece, except it’s real. And let’s face it, robot factories go beyond being just cool; they epitomize unmatched practicality.
Here’s why we couldn’t resist investing in Leumas and why we are absolutely hooked on their potential:
A Disruptive Solution for a Complex Market
The manufacturing industry is notorious for its labyrinthine supply chains, inventory management challenges, and complex production processes. Traditional manufacturing practices involve excessive product inventories, long waiting times, and huge capital investments. Leumas has the right aces up it’s sleeve to solve this: Manufacturing as a Service, Digitalization and Agile Nano Factory Manufacturing Solutions.
Let’s take a look at some market stats:
Back in 2020, the global manufacturing market was valued at a mind-blowing $39.84 trillion, and it’s projected to reach a staggering $62.34 trillion by 2028, with a CAGR of 5.6% from 2021 to 2028. In this, for Leumas, total global size for addressable formats is estimated to be $500 billion.
But that isn’t all, the digital manufacturing market is expected to hit a whopping $1,370 billion by 2030, thanks to the adoption of digital technologies.
By embracing cutting-edge technologies like AI, cloud computing, and automation, Leumas is helping businesses conquer these challenges head-on. They’re poised to revolutionize the game with near-zero product inventory, low minimum order quantities, and new product development on the cloud. It’s like a breath of fresh air for businesses, streamlining operations, slashing costs, and responding swiftly to market demands.
Tackling Industry Pain Points
Leumas has taken the time to understand the pain points that businesses in the manufacturing sector face, especially early stage startups. They’ve done their homework, conducted thorough market research, and sat down with industry players to gain valuable insights.
Around 25% of all manufacturing startups crash and burn within their first year. Yeah, pesky product inefficiencies and operational challenges can be deal-breakers.
And here’s a fact: Manual processes and errors eat up a whopping 5–15% of manufacturing costs.
These problems more than anything else, effect early stage D2C startups.
· Solving R&D and NPD Challenges in Early-Stage D2C Startups:
Early-stage D2C startups frequently face significant challenges in R&D. These can include limited financial resources, lack of experienced R&D teams, and the need to iterate quickly to meet market demands. Developing innovative products and bringing them to market efficiently requires substantial investment in R&D, which can be a barrier for startups.
Furthermore, they need to balance the cost and time involved in R&D with the need to bring products to market quickly.
According to a study by CB Insights, 42% of failed startups cited the lack of a market need for their product as a primary reason for their failure. This highlights the importance of effective R&D and market research to ensure alignment with customer demand.
Leumas’s agile manufacturing solutions enable early-stage D2C startups to optimize their R&D processes. By leveraging cloud-based product development, businesses can iterate rapidly, reduce costs, and bring products to market faster.
· Tailored Manufacturing Solutions at early stage:
Start-ups are brave souls fighting against all odds to bring their brilliant ideas to life. We’ve been in the trenches with them, and it ain’t easy. Startups pour their hearts, souls, and pocket change into research, development, and product formulation. However, they may not have the sales volume to make it economically viable for contract manufacturers to produce their products.
As a result, start-ups are often faced with two difficult options: either agree to unfavourable terms from contract manufacturers, or manufacture their products in-house, which can be expensive and time-consuming. It can be very difficult to find manufacturing partners who are willing to work with you when you’re just starting out. With Leumas, start-ups can benefit from an agile, scalable approach that enables them to quickly adapt to changing market conditions and improve their manufacturing processes. It’s a win-win situation.
Disrupting Manufacturing with Innovation
Leumas’s vision extends far beyond individual businesses. Their cloud solutions coupled with hardware applications pave the way for an asset-light and eco-friendly manufacturing ecosystem, where robots and automation take centre stage in production.
Here could be the potential impact of Leumas’s solutions:
If digital manufacturing technologies are widely adopted, we could witness a staggering 4.1% increase in global GDP by 2025, amounting to a jaw-dropping $3.7 trillion in economic value.
By embracing Leumas’s solutions, businesses can reduce their dependence on manual labour, minimize issues like pilferage and stock-outs, and operate with smaller batch sizes.
Manufacturing-as-a-Service (MaaS)
Leumas’s Manufacturing-as-a-Service (MaaS) model revolutionizes traditional manufacturing practices by providing on-demand access to a digitalized production ecosystem. With MaaS, businesses can tap into advanced manufacturing capabilities, cutting-edge technologies, and a vast network of resources, on the cloud from anywhere. This solves the challenges of excessive upfront capital investments, long production cycles, and inventory management.
In fact, Leumas’s MaaS model has the potential to reduce manufacturing costs by 30% and decrease product development lead times by up to 50%. By democratizing manufacturing, Leumas empowers startups of all sizes to scale efficiently, adapt quickly to market demands, and foster innovation.
Here are major opportunities that startups unlock with Leumas’s Manufacturing as a Service model,
· Flexibility to scale production up or down according to demand
· Cost optimization by eliminating the need of upfront investments in equipment
· Rapid innovation to accelerate product development and innovation cycles
Enabling Just-in-Time Manufacturing and New Revenue Models
One of the game-changing aspects of Leumas’s digitalized manufacturing approach is its ability to enable just-in-time manufacturing. Traditional manufacturing often involves high product inventories and long lead times, which can be costly and inefficient. Leumas’s manufacturing solutions allow businesses to produce goods in response to real-time demand, minimizing the need for excessive inventory and reducing waste.
This approach by Leumas opens up new revenue streams for D2C start-ups.
· They can revolutionize the pharmaceutical industry with prescription-to-customer manufacturing, allowing personalized medication production on demand.
· Co-creation platforms
· Sustainable product lines
· Limited edition collaborations
· Personalized subscription-based products
D2C brands can adapt to market trends, delivering personalized products directly to customers, fostering loyalty.
Pioneering the Future of Manufacturing
Nitesh K and Subhajit Biswas are the minds behind Leumas. Nitesh, the Product & Business powerhouse at Leumas, brings a diverse background that’s perfectly suited for the company’s success. With an educational pedigree from the prestigious Indian Institute of Science (IISc) and experience at GE India R&D and Bechtel, Nitesh has a proven track record of turning ideas into revenue-generating ventures. Subhajit Biswas, the technology lead and operations maestro, complements Nitesh’s skill set with his expertise in building scalable cloud solutions and previous roles at companies like Mercedes R&D and Wipro.
Together, Nitesh and Subhajit form a collaborative duo driving Leumas forward in its mission to disrupt the manufacturing industry.
Market Potential and Growth Opportunities
Leumas operates in a market with immense growth potential and countless opportunities for expansion. Just check out these exciting market indicators:
The global smart manufacturing market is projected to reach an astonishing $548.14 billion by 2028, with a juicy CAGR of 12.4% from 2021 to 2028.
The adoption of cutting-edge Industry 4.0 technologies, such as the Internet of Things (IoT) and artificial intelligence, is fueling the growth of smart manufacturing.
Leumas is in a prime position to capitalize on this market growth by offering its innovative solutions across a wide range of industries. Their agile manufacturing approach allows businesses to customize products, slash lead times, and stay fiercely competitive in rapidly changing markets. And with the rise of e-commerce and the soaring demand for personalized products, Leumas’s value proposition becomes even more compelling.
Conclusion:
Investing in Leumas goes beyond financial gains, offering a transformative journey in manufacturing. With disruptive solutions and a skilled team, Leumas tackles startup challenges. With an expanding market size, significant growth potential, and a crucial need for innovation and resilience, Leumas is perfectly positioned to seize opportunities and drive positive change in the manufacturing sector. We’re thrilled to support their mission to revolutionize digital manufacturing and reshape the industry. The future of manufacturing is bright, with Leumas one od the players leading the way.
At Capital-A, we invest fervently in visionary deep tech hardware startups like Leumas. They merge cutting-edge tech with tangible products, forging solutions for real-world challenges. Manufacturing contributes 16% to the world GDP and had 11.4% annual growth rate in India during FY22. The industry is on the verge of a technological revolution. Machine learning and AI enhance efficiency, with “smart manufacturing” combining IoT and AI expected to grow significantly in the next decade.
If you have building an idea you’d like to pitch or just talk, please reach out to sarath@capital-a.in or hello@capital-a.in
