Cactus Partners has led a US$7 million series A investment in Brandworks Technologies, an electronics R&D and manufacturing company based in India.

Gujarat Venture Finance Limited, Legacy Assets, and the Hira Group also joined the round.

Brandworks Technologies develops hardware and devices in areas such as AI, internet of things (IoT), audio, charging, financial products, surveillance, and renewable energy.

The company plans to use the funds to expand its R&D centers, increase manufacturing capacity, and pursue new international partnerships.

This is the eleventh investment and third manufacturing sector deal for Cactus Partners from its first fund.

Cactus Partners is an early-growth venture capital firm with a focus on manufacturing, technology, and consumer businesses in India.

🔗 Source: Cactus Partners

🧠 Food for thought

1️⃣ Electronics manufacturing boom creates favorable conditions for design-led companies

Brandworks’ $7 million raise comes at an opportune time as India’s electronics manufacturing services sector is experiencing significant growth.

The sector is projected to grow at a 24% compound annual growth rate between FY22 and FY27, with the market expected to reach $80 billion within five years1.

This growth is supported by concrete results, with mobile phone manufacturing alone surging 22-fold to ₹4,22,000 crores in 2023-24, demonstrating the sector’s rapid scaling capability2.

The government’s National Policy for Electronics 2019 targets $400 billion in domestic electronics production by 2025, creating substantial market opportunities for companies like Brandworks that combine design capabilities with manufacturing expertise3.

This policy environment, along with Production Linked Incentive schemes, has created a supportive ecosystem that benefits electronics companies seeking to scale operations and expand globally.

2️⃣ Global supply chain diversification drives demand for Indian electronics partners

Brandworks’ focus on partnering with global chip companies aligns with the “China Plus One” strategy that is reshaping global electronics manufacturing.