SUMMARY
The round was led by Fundamentum Partnership, a venture capital firm cofounded by Nandan Nilekani and Sanjeev Aggarwal, along with Edelweiss Discovery Fund
With the fresh capital, ProcMart aims to actively explore strategic acquisitions to augment its market leadership and enhance client offerings
It is also planning to enter new industries, expand its distribution network in India and strengthen international operations in Southeast Asia
Noida-based B2B procurement marketplace ProcMart has raised $30 Mn (INR 250 Cr) in a Series B funding round led by Fundamentum Partnership, a venture capital firm cofounded by Nandan Nilekani and Sanjeev Aggarwal, along with Edelweiss Discovery Fund.
The round also saw participation from South Korea-based Paramark Ventures and existing investors, including Sixth Sense Ventures and IndiaMART.
With the fresh capital, ProcMart aims to explore strategic acquisitions to boost its market leadership and scale up client offerings. The strategic acquisitions will enable ProcMart to further optimise its backward integration of supply chain for businesses and to expand contract manufacturing capabilities, the company said in a statement.
It is also planning to enter new industries beyond MRO consumables such as biofuel and packaging, expand its distribution network in India and strengthen international operations in Southeast Asia.
The capital raised will also be used for talent acquisition, technology and building footprints in newer regions in India and globally.
“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, CEO and founder of ProcMart.
ProcMart, operated by Instant Procurement Services Pvt Ltd, was launched in 2015 by Popli as an enterprise-focused MRO (maintenance, repair and overhaul) supply chain aggregator. It connects a variety of stakeholders across various levels of the supply chain and industries, to help them select the best procurement solutions.
The startup works with top-tier global MNCs and domestic companies across various product categories and industries such as FMCG, auto, pharma, metal, power and others.
ProcMart’s tech platform offers comprehensive and end-to-end solutions for indirect sourcing requirement right from vendor consolidation, inventory management, digital procurement, expense tracking to logistics management.
Currently, it has a presence across 20 cities in India and international operations in Malaysia and Indonesia. In the next 12 months, ProcMart plans to leverage AI and machine learning to scale its operations and build AI-powered recommendations of inventory procurement and management to improve overall efficiency.
Back in 2022, ProcMart raised $10 Mn (INR 81.86 Cr) in its Series A funding round from Sixth Sense Ventures.
ProcMart’s fundraising comes at a time when the overall funding in the Indian startup ecosystem declined 33% Year-on-Year (YoY) in the first quarter of 2024 (Q1 2024) to $2 Bn, registering a seven-year low, according to Inc42’s ‘Indian Tech Startup Funding Report Q1 2024’.
