B2B marketplace ProcMart raises $30 mn in series B funding from Fundamentum
Online business-to-business (B2B) startup ProcMart said it raised $30 million in series-B funding, led by Nandan Nilekani and Sanjeev Aggarwal’s venture capital (VC) fund, Fundamentum Partnership, and Edelweiss Discovery Fund.
The round also saw participation from South Korea-based Paramark Ventures. The company’s existing investors include Sixth Sense Ventures and IndiaMART.
ProcMart aims to use the funds to “actively explore strategic acquisitions to augment its market leadership and enhance client offerings.”
These acquisitions will enable ProcMart to further optimise backward integration of its supply chain for businesses as well as expand its contract manufacturing capabilities.
“As a fund, we are typically attracted to B2B platforms that can enable large enterprises to outsource and digitise non-core yet critical functions of their businesses. ProcMart sits very well with this thesis of ours. Anish and team have demonstrated a proven record of digitising legacy processes for indirect procurement,” said Prateek Jain, principal, Fundamentum.
“Fundamentum was attracted by the founding team’s focus on fundamentals. It is growing 100 per cent year-on-year (Y-o-Y) and is profitable over the last three years. This is a rarity in the Indian startup landscape,” he added.
The company is set to enter new industries beyond maintenance, repair and operations (MRO) consumables, such as biofuel and packaging.
It will expand the distribution network in India and strengthen international operations in Southeast Asia.
The capital raised will also be deployed towards talent acquisition, technology and building footprints in new regions in India and globally, the company said.
ProcMart currently has a presence across 20 cities in India and international operations in Malaysia and Indonesia.
In the next 12 months, ProcMart plans to leverage artificial intelligence (AI) and machine learning (ML) to scale its operations.
It will build AI-powered recommendations of inventory procurement and management to improve overall efficiency.
“With the rise of centralised procurement and a shift towards optimising non-core expenditures, the Indian MRO industry is on the brink of a significant transformation.
Owing to our established credibility and robust infrastructure, we are well positioned to capitalise on this market opportunity,” said Anish Popli, founder and chief executive officer (CEO), ProcMart.
Founded in 2015 by Popli, ProcMart enables large enterprises to connect with numerous vendors for their indirect purchases through its interface.
“ProcMart is a high-growth profitable company that is expanding the MRO category in India. The company has demonstrated excellent service capability with a marquee set of customers,” said Ashish Agarwal, managing partner, Edelweiss Discovery Fund.
First Published: Apr 16 2024 | 6:01 AM IST