Building Better Brands | Cloud Manufacturing Reimagines Windows And Doors

April 4, 2025

We explore how Green Fortune, a windows and doors maker is disrupting the industry with cloud manufacturing and a focus on the missing middle segment in India's booming market.

Patric Hellermann

Building Better Brands | Cloud Manufacturing Reimagines Windows And Doors

tl;dr

Green Fortune raises $4.5M from Foundamental to transform windows and doors manufacturing in India

Cloud manufacturing enables high-quality, customized products without owning factories

Windows and doors constitute 8% of home value, emphasizing their importance to consumers

Green Fortune targets the underserved middle market between luxury and substandard options

Dolphin founder philosophy demonstrates profitability before scaling with investment

Fundamental sees multiple construction tech IPOs ahead in India's developing market

Windows are literally cutting holes into our building envelope, which is supposed to keep warmth or cool air in and noise out. That's why they're probably the most important part to get right.

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Green Fortune raises $4.5M from Foundamental to transform windows and doors manufacturing in India

We're excited to share that Green Fortune, a windows and doors maker, has just raised $4.5 million in a round led by Foundamental. This investment might raise eyebrows for those who follow startups and VCs. After all, backing a traditional company manufacturing doors and windows doesn't immediately scream "venture-style bet." But there's much more beneath the surface.

As Shub Bhattacharya from Foundamental explained, this investment follows a thesis they've been developing for about two years, inspired by their experience with InfraMarket. InfraMarket evolved from being described as a "concrete and cement" company into a house of brands using what they call a "cloud manufacturing" model across different material categories.

This cloud manufacturing approach represents an asset-light model for getting products manufactured and selling them under a proprietary brand. It's reminiscent of what we've seen with InfraMarket but applied specifically to the windows and doors category.

What's particularly interesting is how Foundamental approached this opportunity. They studied which types of companies perform well after IPO, finding that building material brands in India have been "phenomenal performers" in public markets—possibly surprising to Western observers who don't typically associate building materials with excellent long-term investment returns.

Green Fortune applies this cloud manufacturing model to doors and windows by connecting fabricators from markets like Turkey, China, Vietnam, and Europe, bringing everything together to offer capacity to smaller suppliers. They then provide these products under their own Green Fortune brand to developers and consumers.

The company was founded by Dilip, who previously led the building materials category for BCG in India as a partner, bringing considerable industry knowledge to the venture.

Cloud manufacturing enables high-quality, customized products without owning factories

What exactly is cloud manufacturing in this context? It's essentially a business model innovation that allows Green Fortune to deliver high-quality, consistent products without actually owning the production facilities.

The way they achieve this is by working with carefully selected fabricators who are almost entirely dependent on Green Fortune for their business—some doing nearly 100% of their work for the company. Green Fortune commits to providing these fabricators with steady demand, and in return, the fabricators implement Green Fortune's specifications and quality standards.

This arrangement allows Green Fortune to market these fabricated products as their own branded windows and doors, maintaining control over quality while avoiding the capital-intensive investments in manufacturing facilities.

While some might question where the "tech" is in this model, Shub points out that there's still technology required to connect all these moving parts at scale. "You cannot run it off of a spreadsheet," he notes. "You still need pieces of technology to connect it at scale."

Patric Hellermann makes an excellent point about moats and competitive advantages: "I always struggle with people looking for technology as the only way to build a moat. Brad Jacobs built three very, very successful businesses that are super execution intensive with technology sprinkled in, but in the end, the moat was managing the complexity."

This execution-focused approach creates barriers to entry through operational excellence rather than proprietary technology alone. It's about creating a system that works efficiently at scale and delivers consistent quality—something that's much harder to replicate than a single technology solution.

Windows and doors constitute 8% of home value, emphasizing their importance to consumers

We might not often think about it, but windows and doors are critically important components of any building. As Patric eloquently explained, "Windows are literally cutting holes into our building envelope, which is supposed to keep warmth or cool air in and noise out. That's why they're probably the most important part to get right."

Beyond their functional importance for energy efficiency and noise control, windows and doors are also among the most frequently touched components in any home. "It is literally the building component that your hands will touch the most" after light switches, notes Patric. This creates a haptic experience that contributes significantly to the perception of quality in a home.

Additionally, windows play a crucial role in the visual aesthetics of a building, both from inside and out. The framing, finishing, and texture all contribute to whether a building looks high-quality and aesthetically pleasing.

According to Foundamental's analysis, windows and doors constitute about 8% of the value of a home in terms of spend. Interestingly, this ratio increases as the value of the home goes up. If you want to increase your home's value, you'll likely spend more than 8% on doors and windows—perhaps 10% or even higher.

This explains why windows as a category command some of the highest margins across the building materials industry globally. People care deeply about this category because it significantly impacts both the functional performance and aesthetic appearance of their homes.

Green Fortune targets the underserved middle market between luxury and substandard options

One of Green Fortune's key value propositions is addressing what Shub describes as "the very large missing middle" in the Indian market. Currently, consumers face a binary choice: either opt for luxury windows and doors that are only affordable to a small percentage of the population, or settle for substandard options with poor quality and limited selection.

The majority of available products on the lower end are essentially white-labeled items from fabricators who have little incentive to improve quality or incorporate customer preferences. This results in limited color options, poor material selection, and basic configurations that don't meet the evolving demands of India's growing middle class.

Green Fortune is filling this gap by offering premium-quality products at more accessible price points. They provide a wider range of colors, materials, and configurations, including options like double-glazed windows that have very low penetration in India but increasing demand as alternatives to air conditioning in the hot climate.

The company also offers specialized products like tilt-and-turn windows commonly found in Europe but rare in India. These windows can function both as windows and doors depending on how the handle is configured. There's apparently a segment of Indian consumers who have seen such products in Europe and want to incorporate them into their homes in India.

By reimagining what a windows and doors maker can be for India's expanding middle class, Green Fortune is tapping into a significant market opportunity. They're not just selling products but addressing distinct tastes and aspirations of consumers who want more than what's currently available.

Dolphin founder philosophy demonstrates profitability before scaling with investment

One aspect that particularly impressed Foundamental about Green Fortune was their adherence to what Patric calls the "Dolphin founder" philosophy. This approach involves "coming up for air before a funding round" by proving profitability prior to seeking investment.

This isn't just about showing positive gross margins or contribution margins after marketing and sales—those are basic requirements for any viable business. Rather, it's about demonstrating profitability on an EBITDA or, ideally, net profit basis before raising capital.

The purpose of this approach is twofold. First, it proves that the business model fundamentally works and can generate real profits. Second, it demonstrates that the founders are "true blood entrepreneurs and not just some VC-style founder that is able to continuously spin a narrative in order to spend and burn more money."

After proving profitability, these "Dolphin founders" raise capital to take new bold bets, and "then the dolphin goes underwater again." This cyclical approach of proving viability before scaling with investment creates a more sustainable growth trajectory and better alignment between founders and investors.

Green Fortune had achieved EBITDA profitability before this funding round, with Shub noting they'll likely reach net profitability soon. This $4.5 million investment will primarily go toward building the brand, opening more experience centers (retail outlets combined with office spaces to showcase products), marketing their direct-to-consumer offering, and supporting working capital needs.

The business operates through three primary channels: selling to fabricators (a relatively small portion of the business), selling to developers for new construction projects, and selling directly to consumers who want to replace or install new doors and windows. Most revenue currently comes from product sales, with a portion derived from maintenance and recurring services—another aspect that attracted Foundamental.

Fundamental sees multiple construction tech IPOs ahead in India's developing market

The conversation revealed interesting dynamics in India's construction technology ecosystem and investment landscape. Shub noted that there's been a significant uptick in optimism and investment activity in recent months, particularly for larger rounds. This follows what he described as a "very depressed 2023" for investment activity in India.

The notorious "Series B gap" that has long plagued the Indian startup ecosystem appears to be narrowing, with more liquidity entering the market. Interestingly, Shub mentioned that more Western funds are considering India-specific investment strategies rather than lumping India into broader "emerging market" approaches.

This shift makes sense given India's distinct characteristics. As Patric pointed out, a useful definition of "emerging markets" might be "lots of potential, but lots of ambiguity and uncertainty." By this definition, India no longer qualifies as an emerging market—it offers tremendous potential but with comparatively clear frameworks and certainty for investors.

The Indian market has evolved to a point where it deserves its own dedicated investment thesis, similar to how China has been approached for the past decade. This increased interest from international investors could bring more liquidity to Indian construction tech startups, though it also raises concerns about potential market overheating.

For Foundamental specifically, 2025 is shaping up to be an exciting year with two potential IPOs in their portfolio. One company, Infraprime Logistics, has already submitted its draft prospectus for a listing on Indian public markets. Infraprime organizes the entire supply chain from aggregate quarries to construction sites or ready-mixed concrete plants—another profitable venture in Foundamental's portfolio.

These upcoming IPOs represent significant milestones for construction tech in India and challenge the notion that the sector lacks exit opportunities. While Foundamental hasn't disclosed their exit strategy, they're waiting for price discovery before making final decisions.

The podcast also touched on the challenges Western investors face when entering the Indian market. Beyond the obvious cultural differences, India's bureaucratic processes can be "maddening" according to Shub. Patric added that many investors are unaware of issues like India's withholding tax, which can create complications during exits if not properly structured from the beginning.

Despite these challenges, India's construction tech ecosystem continues to mature, with companies like Green Fortune and Infraprime Logistics demonstrating that profitable, scalable business models are possible in the sector.