SaaS-enabled marketplace for metal manufacturers NowPurchase raises $6 million

NowPurchase, a SaaS-enabled marketplace for metal manufacturers, has raised $6 million in a mix of equity and debt.

According to the startup, the majority of the funds were raised through equity, with Info Edge Ventures leading the round.

Other notable participants include Orios Ventures Partners, 100 Unicorns, VC Grid, as well as family offices and angel investors such as Dholakia Ventures, Real Ispat Group, Subhrakant Panda, Ankur Warikoo, and Kedar Lele.

Additionally, Capsave Finance and UC Inclusive contributed to this round, bringing the total funding raised to date to $10 million.

What does NowPurchase do?

NowPurchase is a procurement solution where metal manufacturers can procure high-quality raw materials like metal scraps, alloys, and additives in a trusted and transparent manner.

The startup also provides its users with a WhatsApp bot to discover prices and stock in real time, a team to provide on-ground service and quality assurance, and a proprietary SaaS platform, MetalCloud, to optimize their manufacturing process.

Purpose of fundraising

NowPurchase plans to use the raised funding for various strategic initiatives, including expanding geographically into more clusters across India and launching new solutions to serve the metal manufacturing industry better.

The startup will also focus on the creation of a network of scrap processing centres, the development of private labels, and the integration of AI and MetalCloud as the foundational operating system for metal manufacturing.

Who are the founders?

NowPurchase was founded in 2017 by Naman Shah and Aakash Shah, with an initial investment of $300,000 from Nipha Group.

“The disorganized and fragmented nature of this sector presents a prime opportunity for disruption. We are more confident than ever about this potential and are excited to roll out our solution to metal manufacturers nationwide. With 2x year-over-year growth over the past three years, we have demonstrated the strength of our business model and the vast market potential," said Naman Shah, who is also the CEO of NowPurchase.

"Our SaaS layer, MetalCloud has seen a tremendous response in the last 9 months with more than 100 factories actively using it across the country. We believe this would be a game changer and a strong MOAT as we scale," Shah added.

“We're dreaming big while staying grounded in execution. We're thrilled about the core team we've assembled and are looking forward to the next phase of growth in the upcoming quarters," Aakash Shah added.

NowPurchase's proprietary platform, MetalCloud, is a sophisticated operating system that enhances transparency and efficiency in metal production and melting processes.

The startup claims that it serves over 250 factories across the metal supply chain, including major corporations like Titagarh Rail Systems Limited, Brakes India and many more.

Basic Roots Consulting acted as the financial advisors for this deal.