B2B industrial marketplace startup Pneucons raises funding from Ather CEO Tarun Mehta, others

Ahmedabad-based B2B industrial marketplace startup Pneucons has closed an undisclosed pre-series investment round primarily driven by social media engagement.

Notably, Tarun Mehta, Co-founder and CEO of Ather Energy, participated in the round in his personal capacity, along with other angel investors.

Plans for expansion and development

The startup will use the raised funds to expand its team and enhance its capabilities in cross-border transactions. 

"With this funding and notable investors on our cap table, we are now equipped to embark on a journey of growth and expansion, driven by our belief in our mission and the trust of our stakeholders," said Pritesh Lakhani, Co-founder and CEO of Pneucons.

Addressing key market challenges

Founded in 2022, Pneucons specializes in major engineering categories, including fire safety, pneumatics and hydraulics, industrial automation, plastic and packaging, electric cables and products, and power tools.

The startup aims to address several critical issues faced by SMEs and MSMEs in India's industrial sector, such as credit defaults (Udhaari), opaque pricing, and the availability of genuine quality products. 

"This funding round underscores the critical need for a transactional marketplace tailored for SMEs and MSMEs, particularly those struggling with Udhaari (credit terms) and opaque sourcing and pricing structures," Lakhani added.

Despite initial hesitations from VCs and investors regarding a cash-based, cross-border marketplace, Pneucons used Twitter effectively to validate their market presence and attract investor interest.

Pneucons' market presence

Pneucons claims to have a significant presence in over 42 countries, boasting 7,000 buyers and 70 sellers, all acquired through word of mouth.

The startup has executed cross-border transactions in 12 countries and domestic transactions within India, working with established enterprises and government entities such as Indian Railways, Indian Oil, L&T Suffin, Telangana Power Plant, and ISRO.

Pneucons’ platform enables sellers from tier II and III cities to directly export and import industrial equipment, broadening their market reach.