B2B Marketplace Procmart Secures $30 Million in Series B Funding
ProcMart, a leading business-to-business (B2B) marketplace, has successfully raised $30 million in its Series B funding round. This significant financial boost was led by Fundamentum Partnership—a venture capital fund co-founded by Nandan Nilekani and Sanjeev Aggarwal—alongside the Edelweiss Discovery Fund. Also contributing to the funding round was Paramark Ventures, a South Korea-based investment firm.
The infusion of new capital is set to propel the Noida-based ProcMart’s ambitious plans for inorganic growth, enhance its distribution network across India, and bolster its operations in Southeast Asia. This latest fundraising follows reports from last year on the company’s strategic intentions to expand into new categories such as biofuel, packaging, and safety supplies, with nearly $18 million earmarked for mergers and acquisitions (M&A) to support these ventures.
“We are pushing towards strategic acquisitions for the unbranded supply category so that we can build a comprehensive supply chain from manufacturing to the end supply and increase our gross margins,” shared Anish Popli, founder of ProcMart, highlighting the company’s growth strategy.
ProcMart operates through an application connecting buyers and sellers, facilitating efficient procurement for industries including consumer goods and durables, automotive, oil and gas, healthcare, and pharmaceuticals. Furthermore, the firm is looking to enhance its international footprint, specifically in Malaysia and Indonesia, with plans to expand into Vietnam within the year.
Additionally, ProcMart intends to allocate a portion of its newly acquired funds towards hiring new talent, advancing its technology, and establishing a presence in new regions within India. The startup is capitalizing on the manufacturing sector’s strong digitization wave and the strategic shift in global sourcing patterns favoring diversification from China.
Prateek Jain, a principal at Fundamentum, voiced his optimism about the investment, noting the potential for building a vertically specialized category in the maintenance, repair, and operations (MRO) space. “The MRO space, being a longtail category with a large number of SKUs (Stock Keeping Units) ranging from 5,000 to 15,000, presents a profitable aggregation opportunity,” Jain explained.
This Series B funding marks Fundamentum’s third investment from its second fund, following investments in Kuku FM and Wishlink. Since its founding in 2015 by Anish Popli, Pratik Potnis, and Saheel Joshi, ProcMart has shown remarkable growth. After its Series A funding round last November, which raised $10 million with Sixth Sense Ventures as the sole participant, the company has seen its revenue double to nearly Rs 208 crore in FY23. Popli revealed that ProcMart concluded the last financial year with a threefold growth, achieving nearly Rs 625 crore in revenue and is targeting an annual recurring revenue (ARR) of Rs 1,000 crore by FY25.
Looking ahead, ProcMart has ambitious plans to expand further into Southeast Asia and Africa and is eyeing a potential listing within the next four years. “We are excited by the company’s prospects in deepening existing categories, customers, and geographies and further expansion across these vectors,” said Ashish Agarwal, Managing Partner at Edelweiss Discovery Fund, expressing confidence in the company’s growth trajectory.
The recent funding round not only underscores the increasing investor confidence in ProcMart’s business model and growth prospects but also highlights the vibrant potential of the B2B marketplace sector in India and beyond.
