Karkhana Acquires Micron EMS Tech to Expand Electronics Manufacturing Capacity

Manufacturing startup Karkhana has announced the complete acquisition of Micron EMS Tech Pvt Ltd, a Bengaluru-based electronics manufacturing services (EMS) company, in an undisclosed deal. The move marks a shift in Karkhana’s strategy as it expands from a manufacturing aggregation platform to a full-stack electronics manufacturing partner offering capabilities across the production lifecycle.

Following the acquisition, Karkhana will add a dedicated manufacturing facility of more than 40,000 square feet in Bengaluru. The facility includes high-speed surface mount technology (SMT) lines, through-hole assembly lines for printed circuit board assembly, and more than 10 box-build production lines. The addition is expected to strengthen the company’s in-house printed circuit board assembly (PCBA) capacity while enabling higher levels of automation and advanced testing.

The manufacturing unit will operate with a multi-stage quality assurance process that includes soldering checks, 3D inspection, automated optical inspection (AOI), X-ray inspection, conformal coating and product testing. The company is also introducing digital systems such as enterprise resource planning (ERP) and manufacturing execution systems (MES) to improve operational visibility and create full digital traceability during production.

These upgrades are expected to allow Karkhana to produce a wide range of electronics, from standard assemblies to integrated system-level box builds that can be deployed directly by customers.

The company currently works with more than 25 original equipment manufacturers (OEMs) and plans to expand its customer base. Its sector focus includes industrial electronics, automotive systems, telematics, consumer Internet of Things devices and medical equipment. Karkhana is also aiming to increase exports to the United States and European Union markets as global companies diversify supply chains under the China+1 strategy.

After the acquisition, Karkhana’s workforce will grow to more than 150 employees, combining expertise in manufacturing, engineering, quality control and operations. The company has set a target to reach an annual recurring revenue of INR 200 crore by the financial year 2027.

Founded in 2018, Karkhana provides electronics manufacturing services and box-build assemblies for hardware companies, particularly small and mid-scale firms that often face challenges working with large high-volume manufacturers.

The company is backed by investors including Arkam Ventures, Susquehanna Asia Venture Capital and Vertex Ventures Southeast Asia. Over the longer term, Karkhana aims to develop capabilities as an original design manufacturer, adding design and product development to its manufacturing operations.