AI procurement platform ProcureYard bags $1.72 million in seed round led by Powerhouse Ventures

ProcureYard, a B2B commerce platform for raw material procurement, has raised $1.72 million in its seed funding round, led by Powerhouse Ventures. The round also saw participation from Java Capital, 2am VC, and prominent angels like Abhishek Goyal (co-founder of Tracxn) and Rajesh Sawhney (founder of GSF), according to an official statement.

"The funds raised will be directed toward working capital management and enhancing product development," the company said adding that it plans to expand its AI-powered platform that has already driven success in the metals sector to other raw materials, enhancing its supply chain solutions and expanding market presence.

ProcureYard’s custom-built conversational AI helps EPC contractors digitise their supply chains and interact seamlessly with suppliers. It also offers a multilingual voice agent to assist customers in finding the right suppliers based on their needs.

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Sri Peddu, general partner at Powerhouse Ventures, praised the company for its innovative approach to transforming a traditional, fragmented industry. He highlighted the company's strong execution, rapid growth, and its ability to achieve profitability early on.

Anshu Kandhari, co-founder & CEO, ProcureYard, said, “At Procureyard, we’re using technology to revolutionise even the most traditional industries. Our AI agents, designed with deep expertise, deliver unparalleled solutions—helping SMEs find the right suppliers, negotiate deals, forecast finances, and extract actionable insights, all without complex tool."

"Since our seed funding, we’ve achieved over 6x growth and reached profitability while targeting a $1+ trillion untapped market. As we prepare for Series A, we’re doubling down on scaling our reach, advancing AI solutions for underwriting, lending, and risk mitigation, and continuing to redefine possibilities in this sector," Kandhari added.

About ProcureYard

Operating across over 20 states, ProcureYard has already built a strong network of more than 200 suppliers and serves over 200 SMEs in India. With its comprehensive suite of solutions, including procurement, logistics management, financing options, and AI-driven supply chain optimization, the company is well-positioned to lead the charge in transforming the industry.

Founded in 2023 by Anshu Kandhari, Pankaj Bisht, Somdutt Parashar, and Tushar Agarwal, ProcureYard is a technology-driven platform revolutionising the B2B supply chains in the construction industry.

The company claims to achieve an annualized revenue run rate (ARR) of Rs 300 crore and turning profitable within just 18 months of operation. With its eyes set on ambitious growth, ProcureYard aims to reach Rs 3,000 crore in ARR over the next 12 to 18 months.