According to the startup, MRO is a $650 Bn industry globally and $18 Bn in India, with growth outpacing that of the manufacturing sector. Sixth Sense Ventures’ backing to the B2B startup comes on the back of the belief that ProcMart can leverage the nascency of the unorganized and fragmented MRO market in India.
Delhi NCR-based B2B procurement marketplace ProcMart has raised $10 Mn (INR 81.86 Cr) in its Series A round from Sixth Sense Ventures. The IndiaMART-backed supply chain startup plans to use the funds for international expansion, strengthening vendor partnerships, and upgrading its technology and warehousing capabilities.
The current round comes shortly after IndiaMART subsidiary Tradezeal Online agreed to sell 4,850 equity shares worth INR 13.62 Cr of ProcMart parent Instant Procurement to Sixth Sense Ventures.
ProcMart was launched in 2015 by IIM Lucknow alumnus Anish 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.
ProcMart’s services include purchase order management, contract administration, data management, e-catalogue management, compliance tracking, sourcing support, market intelligence, tail spend management and more. ProcMart counts several enterprises such as Colgate, Mondelez, Harman, Dana and Vedanta among its customers.
With the funds raised, it also plans to expand across industry verticals and product categories. “This financing will be crucial to increasing our geographic reach, forming effective vendor alliances, and improving our technological and warehousing capabilities,” founder and CEO Popli said in a statement. He added that the startup is profitable ‘consistently’.
While the startup is yet to file its FY22 financial results, according to Tofler, ProcMart had revenue of INR 39.06 Cr in FY21, with a profit after tax of INR 1.08 Cr – nearly 3X jump year on year. In September 2022, ProcMart claimed that it would reach a cumulative revenue of INR 1,000 Cr by 2025.
According to the startup, MRO is a $650 Bn industry globally and $18 Bn in India, with growth outpacing that of the manufacturing sector. Sixth Sense Ventures’ backing to the B2B startup comes on the back of the belief that ProcMart can leverage the nascency of the unorganized and fragmented MRO market in India. With the B2B procurement industry, the startup competes with the likes of Udaan, SOLV, ShakeDeal, and more.
