Summary:
Keychain raised $30 million in Series B funding to expand its India-based engineering team, aiming to double headcount in Gurugram.
The startup leverages India's tech talent for product development while serving only Western markets, with no customers in India.
New AI-powered software KeychainOS is being developed to help manufacturers with compliance and efficiency, competing with traditional ERP systems.
Keychain's platform connects top retailers and CPG brands with manufacturers, using a freemium model where manufacturers pay for access.
Total funding now stands at $68 million, with plans for European expansion and growth in product categories like pet and household goods.
Keychain's Strategic Expansion with $30 Million Funding
Keychain, a U.S.-based startup, has secured $30 million in a Series B funding round to scale its operations, with a unique focus on growing its engineering and product development teams in Gurugram, India. Despite being headquartered in New York and serving only Western markets, the company has built its core technical hub in India to drive innovation and growth in North America.
Building a Global Team for Local Impact
Keychain operates as a distributed company, with its India team already representing half of its 70-person global workforce. The startup plans to double its Gurugram team from 35 to 70 employees in the coming months and expand to around 100 within a year. This strategic move is aimed at leveraging India's deep talent pool, availability, and speed in accessing skilled professionals, as emphasized by co-founder and CEO Oisin Hanrahan.
Image Credits: Keychain
Hanrahan, who co-founded Keychain in 2023 with Umang Dua and Jordan Weitz, highlighted that this approach was shaped by their previous experiences at Handy and Angi, where building a sustainable engineering team in the U.S. proved challenging. India's time zone advantage allows for near-continuous development cycles, enhancing productivity.
KeychainOS: AI-Powered Innovation from India
Keychain is not just expanding its team; it's also developing KeychainOS, a new AI-powered software designed to help manufacturers manage product cycles more efficiently. The first module, already available, uses AI to assist with food safety compliance by converting quantitative data into qualitative reports for auditors. Future modules will focus on purchasing, inventory, and production planning, positioning it to compete with traditional ERP systems like Oracle and QAD.
Image Credits: Keychain
Additionally, Keychain has embedded AI into its search and discovery platform, which helps retailers and brands—including top names like 7-Eleven and General Mills—find suitable manufacturing partners quickly. The platform currently serves over 20,000 brands and retailers and 30,000 manufacturers, with plans to expand into pet and household products and enter the European market later this year.
Business Model and Growth Trajectory
Keychain offers its software free to brands and retailers, while manufacturers pay to access the platform, with annual fees averaging around $20,000. The recent funding, led by Wellington Management and BoxGroup, brings Keychain's total raised to $68 million, with over $50 million still in the bank. The startup's valuation has seen a significant increase from its previous round, though specific figures were not disclosed.
This model exemplifies a growing trend among U.S. startups to base engineering teams in India for cost efficiency and talent access, without targeting the local market, similar to strategies used by companies like Deliveroo and Gojek.
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