BENGALURU, INDIA – B2B manufacturing startup Karkhana has acquired electronics manufacturing services provider Micron EMS in a deal valued at about $1.2 million, marking the company’s first move to directly own production facilities.

The acquisition adds a 40,000sq.ft. electronics manufacturing plant in Bengaluru equipped with high-speed surface-mount technology lines, through-hole PCB assembly capabilities and more than 10 box-build production lines. The facility will allow Karkhana to bring printed circuit board assembly, advanced testing and system-level manufacturing in-house.

“For the last seven years we have largely operated as an aggregator connecting OEMs with manufacturing partners,” said Sonam Motwani, founder and CEO of Karkhana. “But as product complexity increased, we realized we needed to start owning capacity, especially in electronics.”

Micron EMS brings more than 15 years of manufacturing experience and established shop-floor operations. Following the acquisition, the combined organization will operate with a team of more than 150 employees across engineering, manufacturing, quality and operations.

Karkhana currently works with more than 25 OEM customers, with most revenue coming from automotive electronics, industrial electronics and connected consumer devices. The company also sees growing opportunities tied to data center infrastructure and energy systems driven by artificial intelligence demand.

The startup aims to scale its business to 200 crore rupees in annual recurring revenue by fiscal year 2027 and plans to expand exports to the United States and Europe as global supply chains diversify.