NowPurchase is a prominent AI-enabled B2B platform specifically designed to cater to the needs of metal manufacturers. NowPurchase has raised approximately $8.6 million (approximately ₹80 crore) in the latest round of funding. This capital infusion was led by Bajaj Finserv. The round saw participation from Info Edge Ventures and Orios Venture Partners.

Fund utilization and vision

The funding round has witnessed support from a diverse set of individual investors, including Shikhar Raj, Real Ispat Group, Madhur Gupta from the Lloyds Group, VC Grid, and Kartik Hosanagar.

NowPurchase has successfully raised approximately $18 million in the latest round of funding, which is a testament to the success of the company in the highly competitive startup landscape. This is the second round of funding raised by the company, as the company successfully raised $6 million in the September 2024 funding round, which included equity and debt from Info Edge Ventures.

The capital raised in the latest round of funding will be utilized to further enhance the capabilities of the company in the coming times, including the expansion of the recycling infrastructure, which is an integral part of the metal manufacturing value chain.

The startup aims to expand the scope of its branded products, which will offer specialized products to its clients. A significant amount of the investment will be allocated to further enhance the company’s proprietary AI technology, which is called MetalCloud, so that the start-up continues to be at the cutting edge of technology in the industry.

NowPurchase is a startup founded in 2017 by Naman Shah and Aakash Shah. NowPurchase was founded with the vision of streamlining the procurement process of metal manufacturers. The start-up has created a platform through which these businesses can efficiently procure the raw materials they need, including different types of scrap, alloys, etc.

The startup has addressed the traditional problems faced in the procurement process of the metal industry through the creation of a digital platform. The start-up has also gone vertical, meaning it has created a network of scrap processing centers, which ensures better quality control.

Value proposition and competition

The value proposition of NowPurchase is based on the sophisticated AI technology, which is called MetalCloud. The startup has created the technology to enable manufacturers to go digital in the most efficient manner possible. 

Internet of Things (IoT) sensors and computer vision technology are integrated into the platform, which provides real-time data to the manufacturers, enabling them to make the most efficient decisions possible. The focus on integrating the physical environment of the manufacturers with AI technology differentiates NowPurchase from other traditional procurement agents in the industry.

The competitive landscape facing NowPurchase is a small, yet very specialized group of metal procurement platforms focused on the Indian market. All of the competitors are striving to achieve the same end goal, namely, the development of strong digital supply chains in the metals and industrial raw materials sector.

Some of the key players in this market include JSW One MSME, OfBusiness, and Metalbook. These companies are all competing to expand their market share within the raw material procurement market. However, NowPurchase’s focus on production optimization through AI technology provides it a competitive edge over its rivals.

Conclusion

The success of NowPurchase’s recent funding round for $8.6 million, led by Bajaj Finserv, is a testament to the importance of NowPurchase’s contribution to the Indian metal manufacturing industry.

By providing a reliable procurement marketplace and innovative AI technology like MetalCloud, NowPurchase is tackling some of the major challenges facing this industry. By continuing to expand its recycling infrastructure and its branded products, NowPurchase is poised to become a cornerstone of this industry.