B2B procurement marketplace ProcMart raises $30 million in Series B

The B2B marketplace ProcMart has raised $30 million (₹250 crore) in Series B Funding led by Nandan Nilekani and Sanjeev Aggarwal’s VC fund, Fundamentum Partnership, and the Edelweiss Discovery Fund.

The round also saw participation from South Korea-based Paramark Ventures. The Company’s existing investors include Sixth Sense Ventures and IndiaMART. DC Advisory was the financial advisor for the fundraise.

ProcMart aims to utilise the funds to actively explore strategic acquisitions to augment its market leadership and enhance client offerings. The strategic acquisitions will enable ProcMart to further optimise backward integration of supply chain for businesses as well as expand its contract manufacturing capabilities. The Company is also set to enter newer industries beyond MRO consumables such as Biofuel & packaging, expand its distribution network in India and strengthen international operations in Southeast Asia. The capital raised will also be deployed towards talent acquisition, technology and building footprints in newer regions in India and globally.

Anish Popli, CEO & founder, ProcMart said, “We are pleased to join forces with our new investors, in our vision to provide a digital ecosystem for indirect procurements. With the rise of centralised procurement and a shift towards optimising non-core expenditures, the Indian MRO industry is on the brink of a significant transformation. Owing to our established credibility and robust infrastructure, we are well-positioned to capitalise on this market opportunity.”

Sachin Jain, chief financial officer & chief strategy officer, ProcMart said, “Our shift towards a phygital model merges our digital expertise with tailored physical engagements, ensuring exceptional customer engagement and satisfaction. Venturing beyond our core MRO consumables into the BioFuel and Packaging sectors reflects our commitment to sustainability and the anticipation of future market needs. Our series B fundraise will be instrumental for us in building the capabilities to fuel our growth plans.”

Prateek Jain, principal, Fundamentum said, “As a fund we are typically attracted to B2B platforms that can enable large enterprises to outsource and digitise non-core yet critical functions of their businesses. ProcMart sits very well with this thesis of ours. Anish and team have demonstrated a proven record of digitising legacy processes for indirect procurement. They have built a robust digital ecosystem for buyers and sellers, brought in ease of operations, quality assurance and significantly reduced tailwind spends for their Fortune 500 clientele. Fundamentum was attracted by the founding team’s tenacious focus on fundamentals, they have been growing 100% Y-o-Y and profitable over the last 3 years, a rarity in the current Indian startup landscape.”

Ashish Agarwal, managing partner, Edelweiss Discovery Fund said, “ProcMart is a high-growth profitable company that is expanding the MRO category in India. The company has demonstrated excellent service capability with a marquee set of customers. We are excited by the company’s prospects in deepening existing categories, customers and geographies and further expansion across these vectors. Edelweiss Discovery Fund looks to back mid-stage companies who are category leaders and scaling profitably. ProcMart is a great fit for our fund and we are delighted to partner with Anish and his team.”