AI procurement platform ProcureYard raises $1.72 million in funding, turns profitable

ProcureYard, a Gurugram and Bengaluru-based B2B commerce platform for raw material, has $1.72 million in a seed funding round led by Powerhouse Ventures.

The round also saw participation from Java Capital, 2am VC, well known angels Abhishek Goyal, Co-founder, Tracxn and Rajesh Sawhney, Founder, GSF. 

What does ProcureYard do?

Founded in 2023 by Anshu Kandhari, Pankaj Bisht, Somdutt Parashar, and Tushar Agarwal, ProcureYard is a technology-driven platform revolutionizing the B2B supply chains in the construction industry.

The startup operates a one stop shop for all supply chain needs for construction, manufacturing and infrastructure companies.

It offers a comprehensive suite of solutions, including procurement and sale of construction raw materials, excess inventory liquidation, customization services, logistics management, financing options, and cutting-edge vertical AI solutions for supply chain optimization and customer relationship management.

Purpose of fundraising

ProcureYard will use the raised capital towards product development and working capital management. The startup plans to leverage its custom-built conversational AI platform, which drove success in metals, and replicate it to other raw materials.

It plans to increase its market presence with its supply chain solutions, the release notes.

Anshu Kandhari, Co-founder & CEO, ProcureYard, said, "At Procureyard, we’re using technology to revolutionize even the most traditional industries. Our 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. Globally, no one offers vertical AI solutions like ours in B2B raw material procurement, and it’s thrilling to witness the transformative impact on our customers and the industry."

Turns profitable 

Notably, the startup has also reached a milestone of Rs 300 crore in ARR (Annualised Revenue Run Rate) and has turned profitable while growing 6X. ARR is the revenue level reached by a company after 12 months.

"Since our seed funding, we’ve achieved over 6x growth and reached profitability while targeting a $1+ trillion untapped market. As we prepare for Series A, we’re doubling down on scaling our reach, advancing AI solutions for underwriting, lending, and risk mitigation, and continuing to redefine possibilities in this sector," Kandhari added.

ProcureYard's market presence

ProcureYard claims to operate in more than 20 states and has built a robust network of over 200 suppliers serving over 200 SMEs in India.

Sri Peddu, General Partner, Powerhouse Ventures, said, "Procureyard is redefining the digital transformation of a traditional, fragmented sector with its vertical AI approach. This is a massive industry plagued by supply chain inefficiencies, and the time is ripe for streamlining procurement processes and delivering unparalleled value to SMEs. Their ability to achieve profitability so early in their journey, coupled with their rapid growth, is a clear indicator of their strong execution capabilities and market demand."

"With their innovative AI agents already solving critical inefficiencies, we are thrilled to support ProcureYard as they expand into new verticals. The team’s vision and focus on profitability set them apart in a competitive market, and we believe they are well-positioned to become a market leader in this space," Peddu added.