How this Pune-based startup is helping small factories thrive in India’s fragmented manufacturing ecosystem

If you walk into a small factory in India today, chances are you’ll see untapped potential everywhere — idle machines, fluctuating raw material supply, and owners struggling with credit cycles.

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For decades, these small and medium enterprises (SMEs), the backbone of India’s manufacturing ecosystem, have been weighed down by fragmented supply chains, uncertain procurement, and a lack of innovation.

It was in this environment that Rawmart, a Pune-based startup founded in 2021, quietly began rewriting the rules of industrial supply.

In just three years, the startup has gone from zero to delivering over a million steel parts with minimal to zero rejection rates, a rare feat in Indian manufacturing.

The idea for Rawmart took shape when Shrenik Bora, Saurabh Rana, and Tejas Changede saw how even capable factories were unable to compete because of unreliable procurement, idle production lines, and financial strain. They believed the problem was not with the skills of SME owners, but with the systems around them.

“We began after identifying the hidden potential within SMEs that was being held back by uncertain supply chains, idle production capacity, cash flow issues, and a lack of innovation and quality products,” the founders recalled.

“Our aim was to create an ecosystem that solved these gaps and enabled SMEs to compete at global standards.”

Enabling growth for factories

In simple terms, Rawmart enables small factories to grow by giving them the raw materials, credit, technology, and production support they need. This means SMEs can increase sales and profits, while large enterprises benefit from efficient sourcing.

Unlike conventional suppliers, the startup goes beyond procurement. It delivers raw materials across India, aggregates credit to ease cash flow, unlocks spare SME capacity through contract manufacturing, and develops custom machines to improve productivity and safety.

What makes Rawmart distinct is its ability to integrate in-house research and design with technology-enabled procurement.

By combining these elements, the startup can move from concept to product nearly three times faster than traditional players. This speed, combined with strict quality plans tailored to each product, has allowed it to maintain its track record of minimal to zero rejection rates.

Unlike traditional suppliers, Rawmart is structured more like a technology company. Every function, procurement, manufacturing, and quality control, is data-driven. The startup has developed a platform that uses predictive modeling to anticipate demand, matches it with available supply, and automates sourcing decisions. This same system helps SMEs optimise their own resources. 

Spare capacity in small factories is aggregated and allocated more efficiently, reducing downtime and costs. Technical queries are resolved within 24 hours, and modular design systems ensure consistency in manufacturing.

As the startup scaled, it realised many SMEs hit a growth ceiling not because they lacked raw materials or buyers, but because they were stuck making the same products as their competitors.

That kind of repetition inevitably eroded margins. To solve this, Rawmart launched Rawmart Labs, an innovation hub designed to help SMEs move beyond replication. The lab identifies gaps in the market, creates bespoke engineering solutions, and develops automation for hazardous or inefficient processes.

It also invests in sustainability — from recycling scrap metals and plastics at scale to exploring greener product designs.

“Rawmart Labs turns innovation into a practical, scalable advantage,” the founders explained.

“It helps SMEs stay ahead of market trends, improve margins, and expand into new opportunities while contributing to safer work environments and a more sustainable industrial ecosystem.”

Serving over 140+ clients

Rawmart now works with more than 140 clients, spanning sectors such as infrastructure, railways, pharma, FMCG, solar, and heavy engineering. Its footprint covers 14 states and 250 pin codes, with multinational corporations in India beginning to introduce the startup to their global headquarters.

Growth has come without heavy fundraising. In fact, Rawmart has remained bootstrapped since inception. In its first year, it recorded $3.5 million in revenue, which more than doubled to $7.8 million the next year.

By FY23-24, revenues had crossed $10 million, driven by innovation through Rawmart Labs and data-led supply chain analysis. Notably, the startup has managed to remain profitable from day one.

A fragmented market, A different approach

India’s supply chain challenges remain formidable. The supplier base is deeply fragmented, quality inconsistent, and credit cycles punishing for smaller firms. Rawmart addresses these gaps by unifying capacities into one production network, using predictive analytics to balance demand and supply, and aggregating credit to ease cash flow.

While traditional traders, procurement agents, and online marketplaces also operate in this space, the founders believe their model is distinct.

“Unlike others, we combine procurement, credit, manufacturing capacity, and innovation in one platform,” they said.

“We don’t just sell materials — we design new products, optimise SME production, ensure quality, and give credit access. This makes us a growth partner, not just a supplier.”

Future plans

Rawmart’s future plans extend beyond steel. It is working on digitising SMEs with ERP systems, IoT integration, and robotics. It is also building integrated manufacturing ecosystems within industrial clusters, where supply chains, production, and quality are synchronised for scale.

The startup will also focus on expanding Rawmart Labs by launching market-first products, investing in sustainable tech like plastic and metal scrap recycling. It will also focus on more  innovation led manufacturing, turnkey projects, and high-value engineering.

Additionally, Rawmart will focus on entering selected markets in Asia and Europe and building long-term partnerships with MNCs and large enterprises, providing end-to-end supply chain and manufacturing solutions.