The financing was headed by Fundamentum Partnership, a venture capital firm cofounded by Nandan Nilekani and Sanjeev Aggarwal, and Edelweiss Discovery Fund. ProcMart intends to use the new funds to actively pursue strategic acquisitions in order to strengthen its market position and improve client services. It plans to penetrate new industries, increase its distribution network in India, and improve international operations in Southeast Asia.
ProcMart, a Noida-based B2B procurement platform, has raised $30 million (INR 250 crore) in a Series B fundraising round led by Fundamentum Partnership, a venture capital firm cofounded by Nandan Nilekani and Sanjeev Aggarwal, and Edelweiss Discovery Fund.
South Korea-based Paramark Ventures joined the round, as did existing investors Sixth Sense Ventures and IndiaMART.
ProcMart intends to use the new money to pursue strategic acquisitions in order to strengthen its market position and expand its customer services. ProcMart said in a statement that the strategic acquisitions will allow it to better optimize its backward integration of the supply chain for businesses and enhance contract manufacturing capabilities.
It also intends to penetrate new industries other than MRO consumables, such as biofuel and packaging, develop its distribution network in India, and strengthen overseas operations in Southeast Asia.
The funds raised will also be used for talent acquisition, technological development, and expansion into new regions in India and around the world.
The Indian MRO market is about to undergo a dramatic upheaval, thanks to the development of centralised procurement and a shift toward optimising non-core expenditures. Because of our established credibility and extensive infrastructure, we are well-positioned to capitalise on this market opportunity,” stated Anish Popli, CEO and creator of ProcMart.
Popli launched ProcMart in 2015 as an enterprise-focused MRO (maintenance, repair, and overhaul) supply chain aggregator. It is administered by Instant Procurement Services Pvt Ltd. It brings together stakeholders from various levels of the supply chain and sectors to assist them choose the best procurement solutions.
The business collaborates with top-tier global MNCs and domestic companies in a variety of product categories and industries, including FMCG, auto, medicine, metals, power, and others.
ProcMart’s technology platform provides complete and end-to-end solutions for indirect sourcing, including vendor consolidation, inventory management, digital procurement, expenditure tracking, and logistics management.
It currently operates in 20 Indian cities, as well as Malaysia and Indonesia. In the next 12 months, ProcMart intends to use AI and machine learning to extend its operations and develop AI-powered inventory buying and management solutions to boost overall efficiency.
Sixth Sense Ventures led ProcMart’s Series A fundraising round in 2022, raising $10 million (INR 81.86 crore).
ProcMart’s investment comes at a time when overall funding in the Indian startup ecosystem fell 33% year on year (YoY) to $2 billion in the first quarter of 2024 (Q1 2024), a seven-year low, according to Inc42’s ‘Indian Tech Startup Funding Report Q1 2024’.
