ERPNext logo
versus
Facto
Comparison · Open-source ERPSep 9, 2026Darshan Shah· CPTO & Co-founder, Facto7 min read

Facto vs ERPNext

Short answer

ERPNext is a genuinely good product and the software is free. What decides this one is whether you want to own the technical burden or hand it to somebody accountable, and features barely come into it.

ERPNext
Facto
Software licence
Free and open source
Subscription, roughly ₹1,000 to ₹3,000 per user per month
Who implements it
You, a partner, or Frappe Cloud
Facto's own engineers
Who fixes it at 11pm
You, or a partner you're paying separately
Us
Shop-floor operator experience
Web forms, generally desk-oriented
Hindi, on a phone, built for the floor
Time to first module live
Depends entirely on your technical resource
6 to 8 weeks
Comparison · 7 min read

We're not going to pretend ERPNext is bad. It has a deep manufacturing model, an active community, and in some areas it goes further than we do. Multi-level BOMs. Subcontracting. The flexibility of the underlying Frappe framework. If you have in-house technical resource, it's a serious option and you should take it seriously.

Most of the plants we work with don't have that resource. That's the whole difference, and everything below follows from it.

Is ERPNext a good fit for an Indian SME manufacturer?

ERPNext fits Indian SME manufacturers who have a developer or IT person in-house. The licence is genuinely free, and the manufacturing model is deep. Without that technical resource, the hosting, implementation, retainer and upgrade rework land on a plant with nobody to own them. Facto is the alternative when you'd rather one company be accountable, with a first module live in six to eight weeks.

Free software isn't a free system

This is the part that catches people, and it isn't ERPNext's fault. It's just how open source works.

The licence is genuinely zero. What isn't zero: hosting, whether self-managed or on Frappe Cloud. Implementation, which in India typically runs into lakhs if you use a partner. A developer or partner retainer, because the system will need changes and somebody has to make them. And upgrades, because custom code written against one version doesn't always survive the next.

Plants that budget for the licence and not for the rest end up with a half-configured system and nobody responsible for finishing it. We've walked into a few of those.

None of that is an argument against ERPNext. It's an argument for costing the whole thing before you start, the same way you'd cost any manufacturing software project in India.

The interface question, which is really the adoption question

ERPNext's interface assumes a desk and a keyboard, because Frappe is a general business framework and that's a reasonable default for most of what gets built on it.

Our floor screens assume the opposite. Hindi, on the phone the operator already carries, designed so an entry takes under fifteen seconds. If your fabricators and machinists are the users, this difference decides adoption, and adoption decides whether the project worked at all.

Karm Machine Tools in Ajmer is the clearest evidence we have. Fifty-eight people on the floor, none of whom had used software for anything before. Six daily users in week one. Forty-one by week twelve.

Daily users on a floor of 58, Karm Machine Tools
Week 16
Week 623
Week 1241

The adoption curve stayed flat for about three weeks before it moved. Budgeting for that flat part is most of the job, and the full rollout is written up here including the parts that went slowly.

On implementation partners

ERPNext's most common failure mode in India isn't the software. It's that a partner configures it, invoices, and leaves before the floor is using it. The system is technically live and practically dead.

That pattern isn't specific to ERPNext. We've written about it separately in do SMEs really need an ERP implementation partner, and it's worth reading before you sign with anyone, us included.

Facto brought multiple functions under one system. Our teams now work with far less confusion.Jitender Jain, CEO, JS Textile

How we'd decide

Answer one question honestly. Who owns this system twelve months after go-live, by name.

If you can name that person and they can read code, take ERPNext seriously. The ceiling is higher than ours, the licence is free, and you'll own the whole thing permanently. If the answer is a shrug, or a name who already has a full-time job running the plant, the free licence is the least relevant number in the comparison.

If open source appeals but you also need a broad business suite rather than a manufacturing system, Facto vs Odoo covers that end of the market, and the manufacturing software guide maps the category as a whole.

Every axis, side by side10 rows
Facto compared with ERPNext, axis by axis.
AxisERPNextFacto
Software licenceFree and open sourceSubscription, roughly ₹1,000 to ₹3,000 per user per month
Customisation depthVery deep, if you can write code against FrappeConfigured rather than coded. There's a ceiling
Owning your data and your sourcePermanently yours, on your server, foreverCloud platform. Your data exports, the code doesn't
Who implements itYou, a partner, or Frappe CloudFacto's own engineers
Who fixes it at 11pmYou, or a partner you're paying separatelyUs
Version upgradesCustom code can break across versionsHandled. There's nothing of yours to break
Shop-floor operator experienceWeb forms, generally desk-orientedHindi, on a phone, built for the floor
Time to first module liveDepends entirely on your technical resource6 to 8 weeks
Indian GST and e-way billSupportedSupported
Manufacturing model depthDeep. Multi-level BOMs and subcontracting go further than oursSized for SME discrete and process manufacturing
What you get billed for, with Facto
Billed, 1 line
  • Software licenceOurs is a subscription. ERPNext's licence is genuinely zero, which is a real advantage.
No separate bill for these
  • HostingIncluded. On open source it's yours to manage or to buy from Frappe Cloud.
  • ImplementationFacto engineers configure and deploy it. On open source this is where the lakhs go.
  • Developer or partner retainerThe system will need changes. Somebody has to make them, and on open source that somebody bills you.
  • Upgrade reworkCustom code written against one version doesn't always survive the next.

We don't publish ERPNext's prices here. Rate cards move, and a stale competitor figure is the fastest way to lose the argument. Ask them for the same breakdown and compare the shapes.

Which one you should buy
ERPNext logo

Choose ERPNext when

  • You have technical resource in-house: a developer, or an IT person who can read code and manage a server. If you do, ERPNext gives you control we don't offer.
  • Your process is genuinely unusual, in a way that needs the data model changed rather than configured. Frappe lets you do that. Past a certain point, code beats configuration.
  • You want to own the system permanently. No vendor dependency, no subscription, your data on your server. That's a legitimate strategic preference and no SaaS vendor can match it.
  • Budget is the binding constraint and time isn't. If you can afford months and can't afford a subscription, the maths favours ERPNext.
Facto

Choose Facto when

  • Nobody at your plant is going to maintain a system. If the answer to who owns this after go-live is a shrug, open source is a trap regardless of how good the software is.
  • The shop floor is the problem you're solving, and your users are fabricators and machinists rather than people at desks.
  • You want one company accountable. If an open-source rollout fails, the software was free and the partner has moved on.
  • You need a first module live this quarter and you don't have anyone to point at a server.
Frequently asked

Is Facto built on ERPNext or Frappe?

No. Facto is built from scratch on its own stack. There's no shared codebase, no Frappe dependency and no open-source core underneath it.

Can we migrate from ERPNext to Facto?

Yes. Your data sits in a standard database and exports cleanly, which is one of the genuine advantages of having started on open source. Masters, items, BOMs and open transactions come across.

Can we try ERPNext first and switch if it doesn't work?

You can, and some of our customers did exactly that. It costs you months. Whether that's a reasonable price for finding out depends on how urgent the problem is.

Is ERPNext's manufacturing module worse than Facto's?

In raw capability, no. In how it behaves in the hands of a fifty-year-old machinist who has never used software, yes, and that gap is what we built into.

Is free software actually free?

The licence is. Hosting, implementation, a developer or partner retainer, and upgrade rework are not. Plants that budget for the licence and nothing else end up with a half-configured system and nobody responsible for finishing it.

Wider view of the category: manufacturing software in India
Weighing both

Bring us the ERPNext quote.

Thirty minutes on a live instance, and an honest read of whether your plant is one we're right for. We'd rather say no than spend six months finding out together.