B2B procurement marketplace ProcMart raises $30M in a Series B round led by Fundamentum Partnership

ProcMart, a Noida-based B2B marketplace specializing in supply chain solutions, has raised $30 million in a Series B funding round led by Fundamentum Partnership—co-founded by Infosys's Nandan Nilekani—and Edelweiss Discovery Fund, with additional participation from South Korea's Paramark Ventures. 

How will ProcMart utilize the funds?

The startup plans to use the raised capital to bolster its business operations. It will explore strategic acquisitions for better integration of supply chains, expanding contract manufacturing capabilities, and enhancing AI-driven technology for inventory management.

Furthermore, ProcMart plans to increase its presence in existing markets like Malaysia and Indonesia and enter new markets in Southeast Asia and potentially Africa. It also plans to expand its client portfolio beyond MRO (maintenance, repair and operations) consumables targeting newer industries such as biofuel and packaging.

What does ProcMart do?

Founded in 2015 by Anish Popli, ProcMart provides supply chain solutions and infrastructure to businesses, including services such as purchase order management, contract administration, master data management, e-catalogue management and market intelligence.

Growth and expansion plans?

Founder and CEO Anish Popli outlined expansion plans, aiming to extend the company's reach to approximately 35 locations within India and expand internationally within the next one and a half years. 

The company's international operations, particularly in Southeast Asia, are expected to contribute significantly to its revenue, targeting a 20% revenue share from these markets within three years.

Popli said ProcMart's revenue surged from Rs 208 crore in FY23 to Rs 625 crore in FY24. “We're looking to reach the Rs 1,000 crore mark this year in terms of the topline number,” he added.

What technological advancements is ProcMart integrating?

In the next 12 months, ProcMart intends to leverage artificial intelligence (AI) and machine learning (ML) to scale operations and enhance efficiency in inventory procurement and management.

The technological advancement aims to optimize the procurement process and provide more value to its clients by improving overall supply chain efficiency.

The startup is focused on deepening its market penetration in existing categories and geographies while exploring new ones. Notably, It is also considering going public within the next four years, aiming to solidify its position in the market further.

What did investors say about ProcMart?

“As a fund, we are typically attracted to B2B platforms that can enable large enterprises to outsource and digitise non-core yet critical functions of their businesses. ProcMart sits very well with this thesis of ours. Anish and team have demonstrated a proven record of digitising legacy processes for indirect procurement,” said Prateek Jain, principal, Fundamentum.

“Fundamentum was attracted by the founding team’s focus on fundamentals. It is growing 100 per cent year-on-year (Y-o-Y) and is profitable over the last three years. This is a rarity in the Indian startup landscape,” he added.

“ProcMart is a high-growth profitable company that is expanding the maintenance, repair, and operation (MRO) category in India. The company has demonstrated excellent service capability with a marquee set of customers. We are excited by the company’s prospects in deepening existing categories, customers and geographies and further expansion across these vectors,” said Ashish Agarwal, managing partner, Edelweiss Discovery Fund.