B2B procurement firm ProcMart raises $10 million from Sixth Sense Ventures

Business-to-business (B2B) procurement marketplace ProcMart has raised $10 million in its Series A funding round led by Sixth Sense Ventures.

The funds would be deployed towards international expansion, strengthening vendor partnerships and upgrading technological and warehousing capabilities, the company said in a media statement on November 21.

Founded in 2015 by Anish Popli, an IIM Lucknow and NIT-Trichy Alumnus with experience in procurement and project management from BHEL and Energo Engineering, ProcMart is an enterprise-focused maintenance, repair and overhaul (MRO) aggregator with a tech-enabled digital platform.

Within 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, the statement said.

“This financing will be crucial to increasing our geographic reach, forming effective vendor alliances, and improving our technological and warehousing capabilities,” Popli said.

ProcMart planned to achieve Rs 1,000 crore revenue in the next three years, he said. As part of its international plan, the startup was planning to expand in Vietnam, Australia and Dubai in the coming months, he added.

Maintenance, repair, and overhaul (MRO) is a $650-billion industry globally, with growth outpacing that of the manufacturing sector. While the US and Europe are the largest markets at $300 billion, with multi-billion-dollar MRO aggregators, India is still a nascent market at $18 billon with under 3 percent penetration and small, fragmented players.

“However, with a $300B manufacturing sector growing strongly, the emergence of centralised procurement and increasing focus on optimising non-core spends, the Indian MRO industry is at the cusp of a disruption,” Popli said.

Some key services offered by ProcMart include Purchase Order Management, Contract Administration, Master Data Management, e-Catalog Management, Compliance Tracking, Sourcing Support, Market Intelligence, Contracting, Tail Spend Management, KPI, and Category Management.

In 2016, Procmart raised an undisclosed amount in its pre-series A funding round from IndiaMart.

IndiaMart-backed ProcMart has 13 offices in India and one in Malaysia, all of which are supported by its own cloud platform. By the end of 2022, the company plans to launch white-label items under the label in the PPE categories. Currently, it has forayed into packaging and is looking to expand its offerings to include construction equipment as well.