CPG Startup Keychain Raises $30M for India Expansion & US Growth

Keychain Secures $30 Million to Expand India Development Team

Keychain, a U.S.-based startup focused on connecting consumer brands with manufacturing partners, has recently obtained $30 million in new funding. This investment will be utilized to bolster its development team located in India, ultimately supporting growth initiatives within the North American market.

Distributed Operations and Strategic Growth

Although headquartered in New York, Keychain functions as a distributed organization, with its primary engineering and product development activities concentrated in India. The newly acquired funding will facilitate a significant expansion of the Gurugram-based team, increasing its size from the current 35 members to 70 in the coming months, and projecting further growth to approximately 100 within the next year.

Currently, the India team constitutes half of Keychain’s 70-person global workforce. Around 20 employees are situated in New York, while the remaining staff members in Austin focus on partnerships, market entry strategies, and sales operations.

The Rationale Behind an India-First Development Strategy

This strategic approach is intentional. Keychain serves exclusively Western markets, yet it has established its core development operations in Gurugram – the nation’s second-largest technology center after Bengaluru – to build its consumer packaged goods (CPG) platform for North American clients.

The platform currently supports eight of the top ten retailers, including 7-Eleven and Whole Foods, and seven of the top CPG brands, such as General Mills, in identifying suitable manufacturing partners, according to the company.

Access to Talent and Expertise

“The availability of talent, its depth, and the speed at which we can access skilled professionals are key factors [in India],” explained Oisin Hanrahan, co-founder and CEO of Keychain, during a recent interview.

Keychain was co-founded in 2023 by Hanrahan, Umang Dua – also his co-founder at Handy, a home services software company later acquired by Angi – and Jordan Weitz. Dua, originally from New Delhi, has proven instrumental in establishing Keychain’s core teams in Gurugram, Hanrahan noted.

Lessons Learned from Previous Ventures

Both Hanrahan and Dua dedicated time to structuring Keychain’s teams across both India and the U.S., ultimately selecting India as the company’s primary engineering hub. This decision was informed by their experiences at Handy and Angi, where they encountered difficulties in building a consistently strong engineering team within the United States.

“Our focus has been on building a core, sustainable engineering organization capable of scaling efficiently, possessing enduring talent, and demonstrating a commercially-focused mindset. We evaluated our previous experiences at Handy and Angi, and India consistently emerges as an exceptional location, fulfilling many of these requirements,” Hanrahan stated to TechCrunch.

India as a Global Tech Hub

Numerous U.S. startups, particularly those developing Software-as-a-Service (SaaS) solutions, establish their engineering and product teams in cities like Bengaluru, Gurugram, and Noida. Recently, India has also witnessed an influx of multinational corporations establishing offshore hubs, often termed global capability centers.

However, Keychain differentiates itself from many of these firms, which also target Indian consumers. It more closely aligns with companies like Deliveroo (U.K.), Gojek, and Grab (Southeast Asia), which leverage India’s technological talent for product development and research without establishing a direct market presence within the country.

Expert Perspective on India’s Tech Landscape

“India’s established position as a global technology hub makes it an attractive destination for product development, even for companies without direct business operations within the country,” commented Neha Singh, co-founder of Tracxn, a Bengaluru-based private market intelligence platform, in an interview with TechCrunch.

Furthermore, India’s time zone facilitates extended working hours, enabling near-continuous development cycles, Singh added.

KeychainOS: A New Innovation from India's Tech Sector

Keychain is strategically expanding its operations in India, intending to leverage its local team for both enhancements to its existing platform and the development of cutting-edge, AI-driven software.

Launched in February 2024, the current Keychain platform connects over 20,000 brands and retailers with suitable manufacturing partners. The new software, known as KeychainOS, aims to streamline product cycle management for manufacturers, offering improved efficiency and oversight.

Key Features of KeychainOS

KeychainOS will be comprised of four distinct modules. The initial module is currently available and focuses on assisting manufacturers in meeting stringent food safety regulations.

This module utilizes AI to transform quantitative data into easily understandable qualitative reports for auditors. Furthermore, it can extract specific data points using natural language processing in response to auditor inquiries, as explained by Hanrahan to TechCrunch.

The remaining three modules will address critical areas such as purchasing and procurement processes, inventory control, and production scheduling, according to the company executive.

KeychainOS is positioned to compete directly with established ERP systems like Oracle, QAD, and Plex. These traditional systems often require supplementary tools like TraceGains and Redzone to fully serve the needs of manufacturers.

Beyond KeychainOS, AI is being integrated into Keychain’s core search and discovery functionality. This enhancement enables retailers to quickly identify and connect with relevant third-party manufacturers for their product needs.

Currently, Keychain facilitates connections between brands and manufacturers specializing in food, beverages, supplements, health, and beauty products. Plans are underway to broaden the platform to include pet and household goods later this year.

Geographic Expansion and Revenue Model

Keychain presently serves clients in the U.S. and Canada, with anticipated expansion into the European market later in the year.

The platform operates on a freemium model, offering its software at no cost to brands and retailers. Manufacturers, however, pay a fee to gain access to the platform and increase their visibility.

KeychainOS provides manufacturers with an additional incentive to participate and engage with the platform.

The company boasts a network of over 30,000 manufacturers, with a significant portion – “hundreds and hundreds” – actively paying for platform access. These customers contribute annual revenues ranging from $10,000 to over $100,000, with an average revenue per manufacturer of approximately $20,000, Hanrahan stated.

Funding and Valuation

Keychain’s recent Series B funding round was spearheaded by Wellington Management, with participation from existing investor BoxGroup and other stakeholders. This brings the company’s total funding to $68 million.

Hanrahan confirmed to TechCrunch that the startup retains over $50 million in cash reserves.

The company’s previous funding round in November 2024, a $15 million raise, resulted in a post-money valuation of $260 million. While the current valuation remains undisclosed, Hanrahan indicated it represents a “good step up.”

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