B2B marketplace ProcMart raises $30 million Series B money

The company counts Sixth Sense Ventures and IndiaMART’s chief executive, Dinesh Agarwal, as existing investors.

The funding will help ProcMart pursue its inorganic growth initiatives, as well as expand its distribution network across India and in Southeast Asia.

Since 2023, the company has been planning to expand its presence in biofuel, packaging and safety supplies, and had allocated nearly $18 million to fund its merger and acquisition plans. “We are pushing towards strategic acquisitions (for unbranded supply category), so that we can build a concrete supply chain, from manufacturing to end supply, and increase our gross margins,” founder Anish Popli said in an interview.

ProcMart, operated by Instant Procurement Services Pvt. Ltd, connects buyers and sellers through an application, facilitating easy procurement of consumer goods, durables, automotive, 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 looking to enter Vietnam also,” 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 digitization trend in manufacturing in India, driven by the China-plus-one strategy and governmental policy initiatives.

“We think this could be a great place to build a verticalized category,” Prateek Jain, principal, Fundamentum, said. “In the MRO space, given that this is a longtail category–with very large number SKUs–the aggregation pay could be very, very profitable. One of the key things we were chasing is the digitisation of B2B businesses in India focusing on large enterprises.

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 had raised $10 million in a Series A round from Sixth Sense Ventures. The company had doubled its revenue to nearly ₹208 crore in FY23, and in FY24, it posted threefold growth, generating nearly ₹625 crore in revenue, he added.

The company is targetting ₹1,000 crore in FY25. It is also planning 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, customers and geographies, and further expansion across these vectors,” said Ashish Agarwal, managing partner, Edelweiss Discovery Fund. “(We) back mid-stage companies who are category leaders and scaling profitably. ProcMart is a great fit for our fund.”

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Published: 16 Apr 2024, 06:30 AM IST