B2B platform redefines raw material procurement for construction, manufacturing, and infra sectors with AI-driven solutions.
In an exciting development for India’s B2B sector, ProcureYard, a Gurugram- and Bengaluru-based AI-powered procurement platform, has successfully raised $1.72 million in its seed funding round. The investment was led by Powerhouse Ventures, with additional participation from Java Capital, 2am VC, and well-known angel investors like Abhishek Goyal (Co-founder of Tracxn) and Rajesh Sawhney (Founder of GSF Accelerator).
Since its founding in 2023, ProcureYard has rapidly scaled its operations, achieving an Annualized Revenue Run Rate (ARR) of Rs. 300 crore and becoming profitable in just 18 months. The company has revolutionized procurement processes for construction, manufacturing, and infrastructure industries by introducing AI-driven tools that simplify supply chain management and address inefficiencies.
Transforming B2B Procurement with AI
ProcureYard’s success lies in its innovative use of vertical AI solutions, tailored to meet the unique demands of India’s fragmented supply chains. The platform offers a suite of solutions that streamline procurement and enhance efficiency:
AI-Driven Procurement Tools: Simplify the process of sourcing raw materials by connecting buyers with the most relevant suppliers.
Conversational AI Agents: Multi-lingual voice agents handle customer inquiries and assist with supplier matching in real time.
Supply Chain Optimization: Tools that digitize supply chains for EPC contractors and SMEs, providing actionable insights.
Excess Inventory Solutions: A platform for liquidating surplus inventory to prevent wastage.
Integrated Logistics Management: Enables seamless coordination of material delivery through optimized routes. This approach has allowed ProcureYard to address key challenges in the industry, such as supply chain inefficiencies and unnecessary procurement delays, while offering significant cost savings for businesses.
Seed Funding to Drive Expansion and Innovation
The $1.72 million seed funding will be strategically deployed to:
Expand Product Offerings: ProcureYard plans to enhance its AI tools for procurement, underwriting, and risk management.
Improve Working Capital Management: Strengthen operational capacity to support growing demand across 20+ states in India.
Scale Market Reach: Increase its presence in Tier 2 and Tier 3 cities, while expanding its supplier network. Sri Peddu, General Partner at Powerhouse Ventures, shared his thoughts on the investment:
ProcureYard’s focus on AI and profitability in a highly competitive sector sets it apart. They are solving critical inefficiencies in supply chains and delivering unmatched value to SMEs. With their rapid growth and strong execution capabilities, ProcureYard is poised to become a market leader.
A Vision for Sustainable Growth
As India’s B2B e-commerce market is expected to grow to $125 billion by 2027 (source: Statista), ProcureYard aims to capture a significant share by focusing on the $1+ trillion untapped market in raw material procurement.
Anshu Kandhari, Co-founder and CEO of ProcureYard, expressed his excitement about the company’s growth trajectory:
Our mission is to use AI to simplify supply chains in traditional industries. By empowering SMEs with cutting-edge tools, we’re not just improving efficiency, we’re transforming how procurement is done in India.
He added: Since raising our seed round, we’ve grown 6X, achieved profitability, and built a network of over 200 suppliers serving more than 200 SMEs. Our focus remains on scaling AI-driven solutions and unlocking value for our customers.
ProcureYard’s Competitive Edge
Unlike traditional procurement platforms, ProcureYard’s AI-driven approach offers a data-first strategy that delivers:
Cost Optimization: AI-based supplier matching reduces unnecessary expenses.
Personalized Solutions: Tailored recommendations based on customer needs and market trends.
Accessibility: Multi-lingual support ensures ease of use for businesses across India’s diverse regions.
Scalability: The ability to replicate solutions across different raw material categories ensures sustained growth.
By providing end-to-end solutions—including procurement, logistics, financing, and inventory liquidation—ProcureYard has become a one-stop shop for SMEs and EPC contractors.
ProcureYard is a Gurugram- and Bengaluru-based B2B commerce platform that leverages AI to simplify raw material procurement for construction, manufacturing, and infrastructure industries. Founded in 2023 by Anshu Kandhari, Pankaj Bisht, Somdutt Parashar, and Tushar Agarwal, the company is transforming traditional supply chains with cutting-edge solutions that enable profitability and sustainability.
Q: How has ProcureYard achieved profitability so quickly?
A: By leveraging AI-powered tools to optimize procurement and address inefficiencies, the company has rapidly scaled its operations while maintaining cost discipline.
Q: What industries does ProcureYard cater to?
A: ProcureYard primarily serves the construction, manufacturing, and infrastructure sectors, offering tailored solutions for SMEs and contractors.
Q: How does ProcureYard’s AI benefit businesses?
A: The platform’s AI agents connect buyers with suppliers, streamline negotiations, and provide actionable insights, helping businesses reduce costs and improve efficiency.
Q: What is ProcureYard’s ARR goal?
A: The company aims to achieve an ARR of Rs. 3,000 crore in the next 12–18 months.