Kolkata-based SaaS marketplace startup NowPurchase has successfully raised $6 million in a funding round led by existing investor Info Edge Ventures. The investment, which comprises a mix of equity and debt, also attracted participation from other notable investors, including Orios Venture Partners, 100 Unicorns, and VC Grid, along with family offices and angel investors. This capital infusion is aimed at enhancing NowPurchase’s offerings and expanding its market presence in the rapidly evolving metal manufacturing sector.
Founded in 2017 by Naman Shah and Aakash Shah, NowPurchase is focused on streamlining procurement processes for metal manufacturers, providing a tech-driven platform to source high-quality raw materials such as metal scrap, alloys, and additives. The company’s proprietary SaaS platform, MetalCloud, is designed to optimize the manufacturing process, addressing the unique challenges faced by the fragmented metal industry.
Expansion Plans and New Solutions
The fresh funding will primarily be directed toward expansion efforts in regions such as Punjab, Rajasthan, and Tamil Nadu, where the company sees significant growth potential in the manufacturing space. Currently, NowPurchase operates in West Bengal, Jharkhand, and Maharashtra, which collectively account for the majority of its business. The company’s leadership believes that entering these new industrial regions will open up lucrative opportunities for growth and innovation.
“Given the rapid developments in the manufacturing landscape, it’s critical for us to enter these new markets. We’re closely analyzing the industrial dynamics in Gujarat, Punjab, Tamil Nadu, and the NCR region,” stated Naman Shah, the company’s founder and CEO.
In addition to geographic expansion, NowPurchase plans to roll out new solutions that enhance its service offerings. This includes establishing a network of scrap processing centers and developing private labels to better cater to the needs of metal manufacturers. Moreover, the integration of artificial intelligence into its operations will allow for more efficient procurement and supply chain management.
Leveraging Technology to Solve Industry Challenges
The metal manufacturing sector is characterized by its fragmentation, which presents both challenges and opportunities for innovative companies like NowPurchase. By providing a centralized platform for procurement, NowPurchase is addressing some of the industry’s most pressing issues, including the difficulty in sourcing quality materials and the inefficiencies in traditional supply chains.
The company has also implemented a WhatsApp bot that offers real-time price and stock updates, ensuring that manufacturers are equipped with the latest information to make informed decisions. This blend of technology and traditional manufacturing practices positions NowPurchase as a leader in the digitization of the metals supply chain.
Kitty Agarwal, a partner at Info Edge Ventures, commented on the potential for growth within this sector: “The fragmentation of the metal sector creates a significant opportunity for companies like NowPurchase. Their innovative solutions are leading the charge in addressing the industry’s most critical challenges.”
Investor Confidence and Future Outlook
The confidence of investors in NowPurchase is evident from their willingness to participate in this latest funding round. Rehan Yar Khan, managing partner at Orios Venture Partners, expressed enthusiasm about the company’s growth trajectory: “We were excited at the potential of the business when we met the founders and first invested a few years ago. We have seen the team execute carefully and build the business well, and thus were happy to participate in this round. The story of digitizing the metals supply chain is still in its infancy, and we believe that in the years to come, a very large business will develop.”
With its focus on technology-led solutions and a commitment to solving the procurement challenges of metal manufacturers, NowPurchase is well-positioned to capture a larger share of this growing market. As the industry continues to evolve, the integration of digital solutions will play a pivotal role in enhancing efficiency and productivity.
Navigating Challenges and Future Growth
Despite the promising outlook, NowPurchase must navigate various challenges inherent in the metal manufacturing sector. These include regulatory hurdles, fluctuating raw material prices, and the need to maintain high standards of quality control. Addressing these challenges will be essential for sustaining growth and building a robust operational framework.
Moreover, as the company expands its footprint, it will need to adapt its strategies to accommodate the unique characteristics of different regional markets. Tailoring its offerings to meet the specific needs of manufacturers in Punjab, Rajasthan, and Tamil Nadu will be crucial for establishing a strong presence in these new territories.
Conclusion
In summary, NowPurchase’s recent funding round marks a significant milestone in its journey to transform procurement for metal manufacturers. With $6 million secured for expansion and technological innovation, the company is poised to address the unique challenges faced by the industry. As it ventures into new markets and rolls out enhanced solutions, NowPurchase is not only strengthening its position in the metals supply chain but also setting a precedent for other startups in the sector. The future looks bright for this ambitious company, and its commitment to leveraging technology for operational efficiency is sure to resonate well with manufacturers seeking modern solutions in an evolving marketplace.
