ProcureYard is an AI procurement platform based in Gurugram and Bengaluru. The startup has secured seed funding worth $1.72 million. According to reports, this seed round was led by Powerhouse Ventures, with investments from Java Capital, 2am VC, and other big names in angel investors such as Abhishek Goyal and Rajesh Sawhney. So, what exactly is ProcureYard?
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PC: Medial
Founded by Anshu Kandhari, Pankaj Bisht, Somdutt Parashar, and Tushar Agarwal in 2023, ProcureYard is transforming the B2B supply chain space, especially in construction. The website acts as a one-stop solution for procurement needs, providing an integrated set of solutions that covers:
Procurement and Sale of Raw Materials
This will enable businesses to procure the required raw materials in an efficient manner.
- Liquidation of Excess Inventory: Helping companies deal with excess stock.
- Customization Services: Solutions tailored to the specific needs of the client.
- Logistics Management: Streamlining the supply chain process.
- Financing Options: Providing financial support to businesses.
- AI Solutions: Utilizing advanced AI for supply chain optimization and customer relationship management.
Purpose of the Funding
The money raised will be used to develop products and manage working capital. ProcureYard aims to utilize its proprietary conversational AI platform that has already achieved success in the metals space, to expand the scope of services to other raw materials. It aims to build further on market presence and continue to redefine the procurement process within the industry.
Anshu Kandhari, Co-founder & CEO of ProcureYard, expressed excitement about the funding, stating that at ProcureYard, they’re using technology to revolutionize even the most traditional industries. Their AI agents, designed with deep expertise, deliver unparalleled solutions, helping SMEs find the right suppliers, negotiate deals, forecast finances, and extract actionable insights, all without complex tools. He emphasized that no other company globally offers vertical AI solutions like ProcureYard in B2B raw material procurement.
Achieving Profitability
ProcureYard has achieved the milestone of Annualized Revenue Run Rate (ARR) of Rs 300 crore, and it is profitable with a growth rate of 6X. This trajectory of growth is remarkable in such an economic scenario where most of the startups face a lot of challenges.
Kandhari noted that since their seed funding, they’ve achieved over 6X growth and reached profitability while targeting a $1+ trillion untapped market. As ProcureYard prepares for its Series A funding round, the company is focused on scaling its reach and advancing its AI solutions for underwriting, lending, and risk mitigation.
Market Presence
ProcureYard operates in more than 20 states across India and has created a strong network of over 200 suppliers who serve over 200 SMEs. This gives the company the potential to capitalise on the growing demand for efficient procurement solutions in construction and manufacturing industries.
Commenting on what ProcureYard has done, Sri Peddu, general partner at Powerhouse Ventures mentioned that ProcureYard is revolutionizing the digital transformation of a deeply fragmented sector in a vertical approach to AI. Their early indication of profitability as well as extremely rapid growth can be an attestation to the effective execution capabilities combined with the ever-increasing market demand.
The recent funding and profitability milestone of ProcureYard indicates its potential to transform the procurement landscape in India. With a strong focus on AI-driven solutions and a commitment to serving SMEs, ProcureYard is well-positioned for continued growth and success in the coming years.