ProcMart, a Noida-based B2B procurement marketplace, has secured $30 million (INR 250 crore) in its Series B funding round. Leading the investment is Fundamentum Partnership, a venture capital firm co-founded by Nandan Nilekani and Sanjeev Aggarwal, in conjunction with Edelweiss Discovery Fund.
Existing investors Sixth Sense Ventures and IndiaMART participated in the round as well as South Korea-based Paramark Ventures.
Fueled by this 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 optimize its backward integration of the supply chain for businesses and expand contract manufacturing capabilities, the company said in a statement.
Additionally, it plans to venture into new industries beyond MRO consumables, such as biofuel and packaging. ProcMart aims to expand its distribution network within India and enhance international operations in Southeast Asia.
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The raised capital will also be allocated towards talent acquisition, technological advancements, and establishing presence in emerging regions within India and abroad.
Anish Popli, CEO and founder of ProcMart, said, “As centralized procurement gains momentum and there’s a growing focus on optimizing non-core expenses, the Indian MRO industry is poised for a notable transformation. Leveraging our established credibility and robust infrastructure, we are primed to seize this market opportunity.”
Founded in 2015 by Popli, ProcMart, operated by Instant Procurement Services Pvt Ltd, began as an enterprise-focused MRO (maintenance, repair, and overhaul) supply chain aggregator. It facilitates connections among diverse stakeholders across different levels of the supply chain and industries, aiding them in selecting optimal procurement solutions.
The startup collaborates with leading multinational corporations and local enterprises spanning diverse product categories and industries including FMCG, automotive, pharmaceuticals, metals, power, and more.
ProcMart’s technology platform provides complete end-to-end solutions for indirect sourcing needs, covering everything from vendor consolidation and inventory management to digital procurement, expense tracking, and logistics management.
At present, ProcMart operates in 20 cities across India and also conducts business internationally in Malaysia and Indonesia. Over the next 12 months, the company aims to utilize AI and machine learning to expand its operations and develop AI-driven recommendations for inventory procurement and management, thereby enhancing overall efficiency.
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In 2022, ProcMart secured $10 million (approximately INR 81.86 crore) in its Series A funding round from Sixth Sense Ventures.
The latest funding 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 billion, marking a seven-year low, according to reports.