February 19, 2025

ProcureYard Raises $1.72 Million in Seed Funding, Achieves Profitability and Rapid Growth

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ProcureYard Raises $1.72 Million in Seed Funding, Achieves Profitability and Rapid Growth

ProcureYard Raises $1.72 Million in Seed Funding, Achieves Profitability and Rapid Growth

ProcureYard, a B2B AI-driven platform for construction supply chains, secures $1.72M in seed funding, records ₹300 crore ARR, and revolutionizes supply chain management.

ProcureYard Raises $1.72 Million in Seed Funding, Achieves Profitability and Rapid Growth

ProcureYard, a leading B2B commerce platform focused on raw material procurement for construction and infrastructure sectors, has successfully raised $1.72 million in a seed funding round. The funding was led by Powerhouse Ventures, with participation from Java Capital, 2am VC, and angel investors such as Abhishek Goyal (Co-founder, Tracxn) and Rajesh Sawhney (Founder, GSF).

Transforming Traditional Supply Chains

Founded in 2023 by Anshu Kandhari, Pankaj Bisht, Somdutt Parashar, and Tushar Agarwal, ProcureYard is pioneering digital transformation in the supply chain space. Designed as a one-stop solution for the construction, manufacturing, and infrastructure industries, the platform provides:

  • Procurement and sale of raw materials.
  • Liquidation services for excess inventory.
  • Customization options and logistics management.
  • AI-driven supply chain optimization and CRM tools.
  • Financing solutions tailored for SMEs.

By leveraging cutting-edge AI solutions, ProcureYard simplifies and streamlines the traditionally fragmented supply chain processes, delivering significant value to its clients.

Purpose of the Fundraising

The funding will be used for product development and working capital management. A key focus is expanding ProcureYard’s AI-powered conversational platform, which has seen success in metals, to other raw materials. Additionally, the company aims to strengthen its market presence and enhance its AI capabilities for broader applications in supply chain solutions.

Reaching New Milestones

The startup has achieved remarkable milestones, including an Annualized Revenue Run Rate (ARR) of ₹300 crore and reaching profitability. This growth represents a 6X increase since its initial funding, underscoring the demand for its innovative solutions.

Anshu Kandhari, Co-founder and CEO, stated:

“Our mission at ProcureYard is to revolutionize supply chains with technology. Our vertical AI solutions empower SMEs to streamline procurement, negotiate better deals, forecast finances, and extract actionable insights effortlessly. The transformation we’re driving in B2B raw material procurement is unmatched globally.”

With a $1+ trillion untapped market, the company is positioning itself for its Series A funding round, aiming to scale operations and advance its AI solutions for underwriting, lending, and risk management.

Expanding Market Presence

ProcureYard currently operates across 20+ states in India, working with over 200 suppliers and catering to more than 200 SMEs.

Sri Peddu, General Partner at Powerhouse Ventures, remarked:

“ProcureYard is at the forefront of digital transformation in the construction sector. Their vertical AI approach addresses inefficiencies in a fragmented market, and their ability to achieve profitability while scaling rapidly sets them apart. We are excited to support their journey as they redefine procurement for SMEs.”

With a strong foundation, rapid growth, and a focus on profitability, ProcureYard is poised to become a market leader in B2B supply chain solutions.

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