Bengaluru: Noida-based business-to-business marketplace ProcMart has raised $30 million in a Series B round led by Fundamentum Partnership, a venture capital firm co-founded by Nandan Nilekani and Sanjeev Aggarwal, along with Edelweiss Discovery Fund. South Korea-based Paramark Ventures also participated in the round.
The company counts Sixth Sense Ventures and IndiaMART chief executive Dinesh Agarwal as existing investors.
The funding will help ProcMart continue its inorganic growth initiatives, as well as expand its distribution network across India and in Southeast Asia.
Starting in 2023, the company plans to expand its presence in biofuel, packaging and safety supplies, and has allocated nearly $18 million to fund its merger and acquisition plans. “We are pushing for strategic acquisitions (for generic supply category) so that we can build a concrete supply chain, from manufacturing to final supply, and increase our gross margins,” founder Anish Popli said in an interview.
ProcMart, powered by Instant Procurement Services Pvt. Ltd, connects buyers and sellers through an app, facilitating easy procurement of consumer goods, durable goods, automobiles, oil and gas, healthcare and pharmaceutical products.
“We want to expand our presence in existing international markets such as Malaysia and Indonesia. This year, we are also looking to enter Vietnam,” Popli added.
ProcMart will also use the funds to expand its team, upgrade its technology platform and expand its footprint in new markets in India. The B2B startup is benefiting from the robust digital trend in manufacturing in India, driven by the China-plus-one strategy and government policy initiatives.
“We think this could be a great place to build a verticalized category,” said Prateek Jain, principal of Fundamentum. “In the MRO space, because this is a long-tail category—with a very large number of SKUs—the aggregation fee could be very, very lucrative. One of the key things we’ve been pursuing is the digitization of B2B businesses in India focusing on large businesses.
This is Fundamentum’s third investment from its second fund, after Kuku FM and Wishlink.
ProcMart was established in 2015 by Popli, Pratik Potnis and Saheel Joshi. Last November, it raised $10 million in a Series A round from Sixth Sense Ventures. The company doubled its revenue to almost ₹208 crore in FY23, and in FY24, it posted three-fold growth, generating nearly ₹625 crore in revenue, he added.
The company aims ₹1,000 crore in FY25. It also plans to expand to more markets in Southeast Asia and Africa, and is looking to go public within four years.
“We are excited about the prospects of deepening existing categories, clients and geographies, and further expansion across these vectors,” said Ashish Agarwal, managing partner, Edelweiss Discovery Fund. “(We) support mid-stage companies that are category leaders and scale. profitably ProcMart is a good fit for our fund.”
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Published: 16 Apr 2024, 06:30 IST
(tagsTo Translate)ProcMart