ProcureYard, the Gurugram-based AI-powered raw material procurement startup, has raised $1.72 million in a seed funding round led by Powerhouse Ventures. Other key participants included Java Capital, 2 am VC, and angel investors such as Tracxn co-founder Abhishek Goyal and GSF founder Rajesh Sawhney.
Funding Boost for Expansion
Founded in 2023 by visionaries Anshu Kandhari, Pankaj Bisht, Somdutt Parashar, and Tushar Agarwal, ProcureYard plans to channel the fresh funds into product development and working capital management. The company’s custom-built conversational AI platform is at the frontline of its growth strategy, simplifying procurement for industries like construction, manufacturing, and infrastructure.
In just 18 months, the startup has achieved profitability, boasting an impressive annualized revenue run rate (ARR) of ₹300 crores. With ambitious goals, it aims to scale its ARR to ₹3,000 crores in the next 12-18 months.
AI at the Core
ProcureYard’s proprietary AI tools streamline supplier selection, negotiations, and financial forecasting. Its multi-lingual voice agent adds an extra layer of accessibility, matching customer inquiries to the best suppliers seamlessly. “Our AI agents are reshaping procurement, empowering SMEs to save time, cut costs, and make informed decisions,” said Kandhari.
The startup operates in 20+ states, connecting over 200 suppliers with nearly 200 SMEs, and plans to expand its AI capabilities to additional raw materials beyond metals.
Why This Matters
The funding comes as AI-driven solutions dominate the tech era. With ProcureYard joining this momentum, it highlights the growing demand for intelligent, scalable tools in traditional industries. As Kandhari noted, “This funding is just the beginning. We’re redefining how procurement is done and setting a new benchmark for AI in the sector.”
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