ProcMart, a business-to-business marketplace, which counts investors like Sixth Sense Ventures and IndiaMART’s chief executive Dinesh Agarwal amongst its backers, has raised $30 million in its Series B round.
The round was led by Nandan Nilekani and Sanjeev Aggarwal’s VC fund Fundamentum Partnership and the Edelweiss Discovery Fund, with participation from South Korea-based Paramark Ventures.
The capital helps Noida-based ProcMart pursue its inorganic growth strategy, grow its distribution network in the country and grow its international operations in Southeast Asia.
VCCircle reported last year about the company’s plan to build presence in categories such as biofuel, packaging and safety supplies, for which it had allocated nearly $18 million to support its M&A plans.
“We are pushing towards strategic acquisitions for the (unbranded supply category), so that we can build a supply chain from manufacturing to the end supply and increase our gross margins,” founder Anish Popli told VCCircle.
ProcMart, operated by Instant Procurement Services Pvt. Ltd, connects buyers and sellers through an application, enabling the buyers in industries like consumer goods and durables, automotive, oil and gas, healthcare and pharmaceuticals to procure effectively.
“We also want to increase our international presence in Malaysia and Indonesia (where we are already present). This year, we are looking to extend to Vietnam,” Popli added.
ProcMart will also use a part of the capital towards talent acquisition, technology and building footprints in newer regions in India too.
The B2B startup is benefitting out of the strong digitisation wave in the manufacturing sector that in turn is reaping fruit out of China plus one strategy and a policy push in the country.
“We think that this could be a great place to build a verticalised category,” Prateek Jain, principal, Fundamentum, told VCCircle.
“The MRO space being a longtail category with large number SKUs from 5,000 to 15,000, the aggregation pay could be profitable,” he added.
“One of the key things that we were chasing is the digitisation of B2B businesses in India focussing on large enterprises,” Jain further said.
The investment is Fundamentum’s third investment from its second fund after Kuku FM and Wishlink.
Founded in 2015 by Popli, Pratik Potnis and Saheel Joshi, ProcMart last raised $10 million in its Series A round, which saw Sixth Sense Ventures as the sole participant, in November last year.
The company doubled its revenue to nearly Rs 208 crore in FY23. Popli said ProcMart ended the last financial year growing 3x, with nearly Rs 625 crore in revenue. Popli said the company is targetting to reach Rs 1,000 crore in ARR by FY25.
It has further plans to expand to more markets in Southeast Asia and Africa and aims to go for a listing in the coming four years.
“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.
