NowPurchase, a procurement technology company for the metal manufacturing industry, has raised 2.4 million USD in a seed funding round led by Orios and InfoEdge Ventures. Angel investor Neeraj Arora (ex-WhatsApp global business head & Co-Founder HalloApp) also participated in the round.
The Kolkata-based company will use the new funds towards expanding its procurement business by establishing a global supplier base and expanding into other parts of India.
NowPurchase was founded by Naman Shah and Aakash Shah in 2017. Naman had worked for multiple startups in the US & Singapore and saw how technology could empower businesses. Back then, NowPurchase was essentially a technology platform for the industrial procurement of smaller industrial parts. Within 18 months, the company pivoted to focus on tech-enabled, production-driven procurement for metal manufacturing companies.
“Metal is the primary building block or backbone of the physical world and will remain so in the foreseeable future. As a result, it is critical that we are able to manufacture metal efficiently. The source and quality of raw materials has a significant impact on metal manufacturing efficiency. NowPurchase is a one-stop procurement platform for these raw materials, and we believe that efficient raw material sourcing can have a significant positive impact on the metal manufacturing industry.” Naman Shah, Founder & CEO, NowPurchase, said.
NowPurchase provides its users with a WhatsApp bot to discover prices and stock in real time, a dedicated technically trained team to provide on-ground service and quality assurance, and a proprietary software-MetalCloud to optimize their manufacturing process.
“Digitizing procurement is a critical milestone and one of the most important gaps that remains to be filled in India’s manufacturing sector. NowPurchase’s tech-first platform will be a game changer in this space. We are excited to partner with Naman to build a technology enabled disruptor in this critical sector.” Vinit Bhansali, Senior Vice President at Orios Venture Partners, said.
The procurement process in India’s $140 billion metal manufacturing market is broken, opaque, has volatile pricing, and lack of consistent & timely supply. Traditional suppliers lack the understanding that procurement decisions are made based on the underlying manufacturing process and not just prices.
NowPurchase is a single point service for all production inputs with:
- Real-time, transparent pricing and stock availability
- Quality assurance with testing & warehousing infrastructure
- Proprietary algorithm to optimize manufacturing process
The company has grown ten-fold since launching its platform for foundries in September 2020. In terms of customers, it has nearly 100 foundries on the platform, with 70 of them transacting monthly.
The NowPurchase team consists of 35 people, with aggressive plans to grow its business & product teams this year.