B2B procurement marketplace ProcMart raises $10 mn in series A
ProcMart plans to achieve Rs 1,000 crore revenue in next three years. It is also planning to expand in Vietnam, Australia and Dubai in the coming months.
The Indian B2B procurement marketplace ProcMart has raised $10 million in series A funding round led by Sixth Sense Ventures.
"In order to secure these funds, Sequitur Advocates provided ProcMart with legal counsel while keeping in mind the company's growth strategy. The latest round of funding will be deployed towards international expansion, strengthening vendor partnerships and upgrading technological and warehousing capabilities," reads the release.
Founded in 2015 by Anish Popli, a first-generation entrepreneur and an IIM Lucknow and NIT-Trichy Alumnus with experience in procurement and project management from BHEL and Energo Engineering; ProcMart is an enterprise focused MRO aggregator with a tech-enabled digital platform. Within just a few years, it has been able to onboard, retain and deepen business with tier-1 global MNCs and domestic enterprises such as Colgate, Mondelez, Harman, Dana, Vedanta while expanding, across industry verticals, and product categories.
Anish Popli, Founder & CEO, ProcMart said, "With consistent growth and profitability over the past few years, ProcMart has emerged as a strong player providing an end-to-end digital ecosystem for indirect procurement to leading MNCs and domestic enterprises. This financing will be crucial to increasing our geographic reach, forming effective vendor alliances, and improving our technological and warehousing capabilities. Sixth Sense have a strong track record of partnering with B2B enablers and helping them scale leveraging their ecosystem connect. We are excited to have them partner with us as we embark upon the next leg of growth."
Nikhil Vora, Founder & CEO, Sixth Sense Ventures said, "ProcMart aligns well with our thesis of betting on first generation founders, creating disruptive businesses in the high potential MRO category in India. We have seen global players like Grainger & Fastenal achieve tremendous scale and growth, especially in US and Europe. The Indian market is relatively nascent but poised for massive disruption given the strong manufacturing potential and growing focus on organising non-core spends. We see ProcMart as a great opportunity to leverage this disruption in the otherwise unorganised and fragmented MRO industry in India. Super stoked to have Anish and ProcMart on board with this investment."
Maintenance, repair, and overhaul (MRO) is a $650B industry globally with growth outpacing that of the manufacturing sector. While the US & Europe are the largest markets at $300B, with multi- billion-dollar MRO aggregators, India is still a nascent market at $18B with under 3% penetration and small, fragmented players. However, with a $300B manufacturing sector growing strongly, emergence of centralised procurement and increasing focus on optimising non-core spends, the Indian MRO industry is at the cusp of a disruption.