B2B commerce platform ProcureYard, focused on raw materials, 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 angel investors Abhishek Goyal (Co-founder of Tracxn) and Rajesh Sawhney (Founder of GSF).

The funds will be used for product development and working capital management as the company plans to expand its conversational AI platform from metals to other raw materials, enhancing its supply chain solutions.

Founded in 2023 by Anshu Kandhari, Pankaj Bisht, Somdutt Parashar, and Tushar Agarwal, ProcureYard provides a range of services, including procurement and sales of construction raw materials, liquidation of excess inventory, customized services, logistics management, financing options, and AI-driven supply chain optimization and customer relationship management. The platform aims to simplify procurement for businesses using advanced technology.

Currently operating in 20 states, ProcureYard claims to have built a network of over 200 suppliers serving more than 200 SMEs across India.

The company has achieved an annualized revenue run rate (ARR) of Rs. 300 crore and reports profitability with a sixfold growth. Looking ahead, ProcureYard aims to reach Rs. 3,000 crore in ARR within 12 to 18 months.

Additionally, the company has introduced a multilingual voice agent that understands customer inquiries and matches them with suitable suppliers, aiming to streamline operations and enhance customer experience. This funding marks a significant step in scaling its innovative supply chain solutions nationwide.