After raising close to $1 million, This 9-month-old startup is solving procurement and project delays in construction industry

In the vast and rapidly growing construction industry, procurement remains one of the most critical yet challenging aspects. Projects often face delays, budget overruns, and inefficiencies due to fragmented communication, lack of transparency, and a heavy reliance on outdated manual processes.

These issues result in a significant impact on timelines and costs, hindering the smooth execution of construction projects.

With numerous stakeholders involved—ranging from project managers and procurement teams to suppliers and subcontractors—streamlining these processes has been a long-standing problem that the industry has struggled to address.

Recognising these inefficiencies, Aravind Maroju saw an opportunity to leverage technology to bring about a transformative solution. "In the construction industry, I observed several inefficiencies, such as fragmented communication, lack of transparency, and the time-consuming nature of procurement processes," Maroju says.

After having extensive discussions with industry professionals and drawing from his own experiences, Maroju realised that many of the delays and budget challenges stemmed from inadequate procurement practices. The solution was clear: create a platform that not only automates and simplifies these processes but also offers insights that adapt to the dynamic nature of construction projects.

With a strong motivation to solve this fundamental issue, Aravind Maroju founded ProcureX Technologies in February 2024.

The startup aims to address the core inefficiencies in construction procurement by introducing an AI-driven platform specifically designed to streamline these processes.

In this journey, Maroju was joined by Narsi Reddy Posham as a co-founder, a serial entrepreneur with a strong background in technology and leadership.

Along with him, Thej Kiran Bitta and Bharath Reddy Deveram also joined as co-founders, each bringing their expertise to help shape the future of ProcureX Technologies.

Narsi Reddy holds an M.Tech in Computer Science from IIT Kharagpur and has successfully led several ventures, including Smartron, OneBasket, and Ira Realty Tech. His experience spans across different industries, where he has used technology to build and grow businesses.

The goal was simple yet powerful—to use AI and data analysis to improve decision-making, enhance resource management, and provide businesses with actionable insights that can lead to more efficient project execution.

Prior to founding ProcureX, Maroju held various senior leadership roles at notable companies such as Purpleplum, Real Variable, Zaggle Prepaid Ocean Services, and AcuteSoft Solutions. He also worked at Quikr, HT Media, and Apollo Health.

“The need for an AI-driven procurement platform became evident through discussions with industry professionals and my own experiences. By integrating AI, we aimed to streamline these processes, enhance data analysis, and improve decision-making,” Maroju said.

His vision translated into a centralised platform that could consolidate procurement activities, allowing seamless communication and collaboration between all stakeholders involved, including project managers, procurement teams, and suppliers.

Transforming procurement with AI

ProcureX Technologies tackles several of the most pressing inefficiencies in construction procurement. Fragmented communication and a lack of transparency often cause significant delays and project overruns. By using AI to integrate and streamline workflows, the startup bridges these gaps.

The platform automates repetitive tasks such as order creation, approval workflows, and invoice processing, significantly reducing manual errors and speeding up the procurement cycle.

“AI has the potential to transform the construction procurement space in several ways. From predictive analytics and smart decision-making to enhanced supplier evaluation and risk management, our platform is designed to provide a comprehensive solution,” the founder explained.

The platform’s AI-driven capabilities allow it to analyse historical data and forecast procurement needs, helping construction firms optimise their inventory and avoid unnecessary delays.

Additionally, AI algorithms evaluate various factors such as cost, quality, and delivery timelines, recommending the best procurement options. This enables smarter, data-driven purchasing decisions that ultimately improve project outcomes.

Offering tailored solutions for construction

What sets ProcureX apart is its specialisation in the construction industry. Unlike traditional procurement solutions, which often offer generic features, the startup focuses specifically on meeting the needs and challenges of construction professionals.

“ProcureX consolidates procurement activities into a single, user-friendly interface, integrating AI algorithms that analyse historical data and market trends for predictive insights,” Maroju highlights.

The platform provides real-time data access, giving users better visibility into procurement processes, order statuses, and supplier performance. By centralising all procurement-related activities, it ensures seamless communication and collaboration among all stakeholders, enhancing efficiency and transparency across the board.

Furthermore, with robust supplier management tools, the platform assesses and scores suppliers based on performance metrics, enabling construction firms to make well-informed decisions about who they work with.

Funding and market valuation

Having secured close to $1 million in seed funding at a valuation of $5 million (Rs 40 crore), ProcureX Technologies has quickly gained traction in the market.

With a customer base that includes 15 buyers and partnerships with 150 suppliers, the startup claims to have expanded its operations to four states, including Telangana, Andhra Pradesh, Kerala, and Bengaluru.

Beyond India, it plans to expand further, with a focus on entering international markets such as the Middle East and Asia-Pacific (APAC) regions.

Additionally, the platform is considering diversification within the construction sector, including extending its solutions to the manufacturing industry, particularly in automotive.

Prioritising R&D

According to Maroju, ProcureX Technologies invests heavily in research and development (R&D) activities and explores emerging technologies like blockchain, IoT, augmented reality (AR), and natural language processing (NLP).

“We prioritise R&D to explore technologies that can enhance our AI capabilities, ensuring our platform remains relevant and effective for the construction industry,” he said.

Blockchain technology, for instance, is being explored for smart contracts and decentralised supplier verification, enhancing transparency and accountability in procurement processes.

Additionally, the integration of IoT could allow real-time data collection from construction sites, feeding valuable information into AI algorithms for improved procurement decision-making.

By leveraging these technologies, the startup aims to remain adaptable and provide its users with the most relevant and innovative solutions.

Since its launch, ProcureX Technologies has delivered substantial benefits to its users. Maroju said that builders, contractors, and subcontractors have reported a 5-7% reduction in procurement costs due to more effective supplier selection and negotiation processes powered by the platform’s AI-driven insights.

Additionally, the platform's transparency has led to a 20% decrease in procurement-related project delays. Users have also experienced a 30% reduction in time spent on administrative tasks, allowing teams to shift their focus to strategic decision-making, which positively impacts project outcomes.

Navigating challenges

For ProcureX Technologies, market adoption has been a significant hurdle, as the construction industry has traditionally been slow to embrace new technologies.

“Convincing stakeholders to adopt an AI-driven platform was challenging. We focused on education and real-world success stories to demonstrate the platform’s value,” he said.

Through workshops, webinars, and free trials, the startup managed to build trust and encourage user adoption.

Integration with existing systems also presented technical challenges. To address this, the startup developed flexible APIs and robust technical support, ensuring smooth integration and user onboarding.

Over the next 3-5 years, ProcureX Technologies aims to solidify its position as a leader in the construction procurement space through strategic expansion, continuous innovation, and a user-centric approach.

“By focusing on delivering a feature-rich platform and fostering strong relationships with our users, we aspire to drive significant improvements in procurement processes and contribute to the overall success of the construction industry,” said Maroju.

“Our long-term vision is to empower construction professionals with the tools they need to thrive in a rapidly evolving landscape,” he added.