NowPurchase Secures $6 Million in Funding for Tech-Led Procurement Solutions in Metal Manufacturing

NowPurchase Nets $6 Mn To Offer Tech-Led Procurement Solutions To Metal Manufacturers

As part of its expansion plans, it is looking to enter Punjab, Rajasthan and Tamil Nadu, on the back of growing opportunities in the manufacturing space SaaS marketplace startup NowPurchase has secured $6 Mn (around INR 50 Cr) in a mix of equity and debt infusion led by existing investor Info Edge Ventures. The round also saw participation from Orios Ventures Partners, 100 Unicorns, Venture Catalysts' Grid, as well as family offices and angel investors such as Dholakia Ventures, Real Ispat Group, Subhrakant Panda, Ankur Warikoo, among others. The company seeks to deploy the fresh proceeds for expansion and rolling out new solutions to better serve the metal manufacturing industry. Naman Shah, founder and chief executive of the company told Inc42 that as part of its expansion plans, the company is looking to enter Punjab, Rajasthan and Tamil Nadu, on the back of growing opportunities in the manufacturing space. "The disorganised and fragmented nature of this sector presents a prime opportunity for disruption," Shah said in a statement. Additionally, the new funds will support the creation of a network of scrap processing centres, development of private labels, and the integration of AI and MetalCloud as the foundational operating system for metal manufacturing, said the company in a statement. Founded in 2017 by Shah and Aakash Shah, NowPurchase procures raw materials through its scrap recycling services and metal cloud platform to benefit metal manufacturers. It also provides its users with a WhatsApp bot to discover prices and stock in real time, a team to provide on-ground service and quality assurance, and a proprietary SaaS platform to optimise their manufacturing process. Shah also told Inc42 that, in the last three years, NowPurchase's topline has seen a 3x growth, year-on-year. Also, the gross margins and capital have displayed steady rise through the years. This comes at a time when the government has been adjusting its lens to focus greatly on the companies and startups in the manufacturing sector. In the light of this, investors have been encouraged to bet on companies that are involved in the metal manufacturing space dealing with raw material procurement, AI solutions and SaaS services. For instance, global metals supply chain startup Metalbook raised $15 Mn (over INR 124 Cr) in a Series A funding round led by Rigel Capital, to achieve an annualised revenue run rate of $200 Mn by the end of FY24, in February. Meanwhile, AI startup UptimeAI secured $14 Mn (about INR 116 Cr) in its Series A funding round led by WestBridge Capital, to scale its AI tech stack and expand product portfolio, in July. In 2022, NowPurchase raised $2.4 Mn (INR 20 Cr) in a seed round led by Orios VP, with minor participation from Info Edge Ventures and others, Shah confirmed. With the current round of funding, the Kolkata-based company has, so far, raised $10 Mn, the company also said.

NowPurchase secures funding of $6 million

NowPurchase, a SaaS-enabled marketplace for metal manufacturers, on Thursday announced that it has secured a funding of $6 million that includes both equity and debt. The majority of the funds were raised through equity, with Info Edge Ventures leading the round, according to a statement. Other notable participants included Orios Ventures Partners, 100 Unicorns, VC Grid, as well as family offices and angel investors such as Dholakia Ventures, Real Ispat Group, Subhrakant Panda, Ankur Warikoo, and Kedar Lele. "Additionally, partners like Capsave Finance and UC Inclusive contributed to this round, bringing the total funding raised to date to $10 million," the statement said. Kolkata-based NowPurchase, founded in 2017 by Naman Shah and Aakash Shah, is a procurement solution where metal manufacturers can procure high quality raw materials like metal scrap, alloys and additives in a trusted and transparent manner. The company said the funds raised would be allocated to various strategic initiatives, including expanding geographically into more clusters across India and launching new solutions to better serve the metal manufacturing industry. The funds will also support the creation of a network of scrap processing centers, development of private labels, and the integration of AI and MetalCloud as the foundational operating system for metal manufacturing. Naman Shah, also CEO of NowPurchase, said, "The disorganised and fragmented nature of this sector presents a prime opportunity for disruption. We are more confident than ever about this potential and are excited to roll out our solution to metal manufacturers nationwide." Kitty Agarwal, Partner at Info Edge Ventures, said the fragmentation of the metal sector created a significant opportunity for companies like NowPurchase. "Their innovative solutions are leading the charge in addressing the industry's most critical challenges. With a remarkable record of consistent year-over-year growth and a strong emphasis on effective business controls and metrics, NowPurchase showcases their capability to execute and scale successfully," Agarwal added. SHARE Copy linkEmailFacebookTwitterTelegramLinkedInWhatsAppRedditPublished on September 19, 2024