Noida, India: ProcMart, India's premier online B2B marketplace specialising in supply chain solutions, has raised $30 Million (INR 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.
Commenting on the Company’s vision and funding, 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.”
Further commenting on the Company’s growth strategy and capital deployment plans, 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.”
Commenting on their investment in ProcMart, 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.”
Speaking on their investment in ProcMart, 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.”
Founded in 2015 by Anish Popli, a first-generation entrepreneur and an alumnus of IIM Lucknow, ProcMart enables large enterprises to connect with numerous vendors for their indirect purchases through its easy-to-use interface. The Company has secured, retained, and expanded its relationships with top-tier global MNCs and domestic companies across various product categories and industries such as FMCG, Auto, Pharma, Metal, Power, and others. ProcMart’s tech platform offers comprehensive and end-to end solutions for indirect sourcing requirement right from vendor consolidation, inventory management, digital procurement, expense tracking to logistics management. With its competitive pricing and specialised services, ProcMart has today emerged as a one-stop solution for its enterprise customers. The Company currently has presence across 20 cities in India and international operations in Malaysia and Indonesia. It has demonstrated cross-border scalability that is marked by consistent growth and profitability. In the next 12 months, ProcMart plans to leverage AI & Machine learning to scale its operations and build AI-powered recommendations of Inventory Procurement and Management to improve overall efficiency.
About ProcMart: ProcMart is one of India’s largest online Business to Business (B2B) sourcing partners for Procurement teams and marketplaces that provide supply chain solutions to empower businesses. Since its inception in 2015, the Company has served as a pivotal integrator, aiding enterprises in selecting optimal procurement technology solutions tailored to their requirements.
About Fundamentum: Launched in 2017, Fundamentum is one of the first ‘scale-up’ home-grown tech venture funds and a strong believer in the ‘India story’. The firm believes in backing exceptional entrepreneurs who are creating built-to-last companies out of India, and actively support them in their growth journey. The fund is led by Indian entrepreneurs-turned-investors - Nandan Nilekani, Sanjeev Aggarwal, Ashish Kumar, Prateek Jain, and Mayank Kachhwaha, who have assisted companies in their scale-up journeys. With its concentrated portfolio approach, Fundamentum leads and co-leads $25-40 million funding rounds, investing in 4-5 start-ups each year and operates on the ‘investment + advice’ model. It focuses on tech-driven startups in the Consumer Internet, B2B marketplaces, Enterprise-Tech, BharatApps, Fintech, Edtech, and other emerging sectors in India. The fund invests in Series B & C (scale-up stage) Indian start-ups that have attained product-market fit. The select portfolio of Fundamentum includes market leaders such as Spinny, Fareye, Kuku FM, and PharmEasy.
About Edelweiss Discovery Fund: Edelweiss Discovery Fund Series – 1 is a growth capital private equity fund that focuses on investing in mid-stage Indian companies and actively supporting them via strategic inputs, strengthening governance processes and with inorganic expansion. The fund is part of the Edelweiss Alternatives platform. With a track record of over a decade, the platform has grown to be one of the largest alternatives platforms in India with an AuM of ~USD 6.3 bn (over INR 50,000 cr).
