ProcureYard raises $1.72M, turns profitable within 18 months

Powerhouse Ventures led a $1.72 million seed funding round for ProcureYard, a B2B commerce platform for raw materials. The round also saw participation from Java Capital, 2am VC, Abhishek Goyal, co-founder of Tracxn, and Rajesh Sawhney, founder of GSF .

The company has achieved an Annualised Revenue Run Rate (ARR) of Rs. 300 crore and turned profitable within 18 months of operations. ProcureYard plans to use the raised capital for product development and working capital management. The company aims to increase its market presence with its supply chain solutions and replicate its custom-built conversational AI platform, which drove success in metals, to other raw materials.

ProcureYard has built a smart procurement platform for EPC contractors to interact, understand their own data, and digitise their supply chain. The company has also launched a multilingual voice agent that understands customer enquiries and matches them with the right set of suppliers.

Sri Peddu, General Partner, Powerhouse Ventures, stated, "Procureyard is redefining the digital transformation of a traditional, fragmented sector with its vertical AI approach. This is a massive industry plagued by supply chain inefficiencies, and the time is ripe for streamlining procurement processes and delivering unparallelled value to SMEs.

ProcureYard operates across 20+ states and has built a network of over 200 suppliers serving more than 200 SMEs in India. The company aims to touch an ARR of Rs. 3,000 crore in the next 12-18 months.