May 24, 2024

B2B marketplace ProcMart raises $30 mn in series B funding from Fundamentum

Business leaders shaking hands - Handshake representing ProcMart's $30 million Series B funding round

ProcMart Logo

 

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, an online B2B marketplace, has secured $30 million in series B funding from Fundamentum, a venture capital fund led by Nandan Nilekani and Sanjeev Aggarwal. Additionally, Edelweiss Discovery Fund and Paramark Ventures from South Korea also took part in this funding round. The startup’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 plans to use the funds to actively seek out strategic acquisitions in order to strengthen its position in the market and enhance the services it offers to clients. These acquisitions will help ProcMart improve the efficiency of its supply chain for businesses, as well as broaden its capabilities in contract manufacturing.

 

Fundamentum, a fund that focuses on B2B platforms that allow large enterprises to outsource and digitize key functions, sees ProcMart as a good fit for their investment thesis.

The founding team’s emphasis on core principles and track record of modernizing procurement processes were appealing to Fundamentum. ProcMart, which has achieved consistent growth and profitability over the past three years, is venturing into new industries like biofuel and packaging beyond its current focus on maintenance, repair, and operations (MRO) consumables.

The company plans to expand its distribution network in India, strengthen its international presence in Southeast Asia, and invest in talent acquisition, technology, and establishing a presence in new regions with the capital raised.}

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.|ProcMart is currently established in 20 cities in India and also operates internationally in Malaysia and Indonesia.

 

Over the next year, ProcMart aims to utilize artificial intelligence (AI) and machine learning (ML) to expand its activities. The company intends to create AI-driven recommendations for inventory procurement and management in order to enhance efficiency. The Indian MRO industry is on the verge of a major transformation due to the increasing adoption of centralized procurement and a focus on optimizing non-core expenses.

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.|

 

“With our proven reputation and strong foundation, we are in a prime position to take advantage of this market opportunity,” stated Anish Popli, the founder and CEO of ProcMart. Established in 2015 by Popli, ProcMart facilitates connections between large corporations and multiple vendors for their non-core purchases via its platform.

 

“ProcMart is a successful and rapidly growing business that is broadening the MRO sector in India. The company has showcased exceptional service quality with a distinguished client base,” commented Ashish Agarwal, the managing partner of Edelweiss Discovery Fund.

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