April 16, 2024: ProcMart has secured $30 million in a Series B funding round to accelerate its business integration and pursue both organic and inorganic growth.
The startup, which is a B2B digital marketplace focused on supply chain solutions, will infuse this capital to explore acquisitions, enabling it to optimise its backward integration of the supply chain for businesses and expand its contract manufacturing capabilities.
Furthermore, the funds will be used for talent acquisition, technology and market expansion. According to Tracxn, besides the current round, ProcMart has cumulatively raised $13.3 million with the last funding in March 2024. Its other investors include Sixth Sense Ventures and IndiaMART.
Anish Popli, CEO and Founder, ProcMart said “We are pleased to join forces with our new investors in our vision to provide a digital ecosystem for indirect procurements. 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.”
ProcMart claims to grow 100% YoY
On the investment, Prateek Jain, Principal, Fundamentum, said, “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.” Jain claimed that ProcMart has been growing 100% year-on-year and has been profitable for the last three years.
Founded in 2015, the startup enables big enterprises to engage with vendors for their indirect purchases through its tech platform interface to faciliate various functions, including vendor consolidation, inventory management, digital procurement, expense tracking, and logistics management.
The firm has set targets to enter newer industries beyond MRO (maintenance, repair, and overhaul) consumables such as biofuel and packaging, expand its distribution network in India, and strengthen international operations in Southeast Asia.
ProcMart has a presence across 20 Indian cities and has international operations in Malaysia and Indonesia. “Venturing beyond our core MRO consumables into the biofuel and packaging sectors reflects our commitment to sustainability and the anticipation of future market needs,” said Sachin Jain, CFO of ProcMart.
The fund was led by Nandan Nilekani’s Fundamentum Partnership and Edelweiss Discovery Fund. The round also saw participation from South Korea-based Paramark Ventures.
