NowPurchase Company Profile

Background

NowPurchase is a Kolkata-based B2B startup founded in 2017 by Naman Shah and Aakash Shah. The company specializes in providing procurement solutions for metal manufacturers, enabling them to source high-quality raw materials such as metal scrap, alloys, and additives in a trusted and transparent manner.

Key Strategic Focus

NowPurchase's strategic focus centers on revolutionizing the procurement process for the metal manufacturing industry. The company aims to:

Optimize Procurement Processes: By offering a comprehensive platform that integrates real-time pricing, supplier comparisons, and logistics management, NowPurchase streamlines the sourcing and delivery of raw materials.

Enhance Manufacturing Efficiency: Through its proprietary SaaS platform, MetalCloud, the company provides tools to optimize manufacturing processes, thereby improving efficiency and reducing costs.

Expand Market Reach: Initially operating in West Bengal, Jharkhand, and Maharashtra, NowPurchase has expanded its operations to regions such as Punjab, Tamil Nadu, and Gujarat, covering a significant portion of India's key metal manufacturing states.

Financials and Funding

NowPurchase has successfully raised over $10 million through multiple funding rounds:

Seed Funding (January 2022): Raised $2.4 million led by Orios Venture Partners and InfoEdge Ventures, with participation from angel investor Neeraj Arora.

Series A Funding (September 2024): Secured $6 million in a mix of equity and debt financing, led by existing investors InfoEdge Ventures and Orios Venture Partners, along with new participants including 100 Unicorns and VC Grid.

The funds have been allocated towards:

Technology and Product Development: Enhancing the MetalCloud platform and integrating AI-based features for better procurement and supply chain management.

Geographical Expansion: Establishing operations in new industrial regions across India.

Supplier Network Expansion: Building a global supplier base to offer a wider range of options for manufacturers.

Pipeline Development

NowPurchase's key offerings include:

MetalCloud: A proprietary SaaS platform designed to optimize manufacturing processes by providing real-time data and analytics.

WhatsApp Bot: A tool that offers real-time price and stock updates, ensuring manufacturers have the latest information for informed decision-making.

Scrap Processing Centers and Private Labels: Establishing a network of scrap processing centers and developing private label products to better cater to the needs of metal manufacturers.

Technological Platform and Innovation

NowPurchase differentiates itself through its technological innovations:

MetalCloud Platform: This proprietary SaaS platform integrates real-time pricing, supplier comparisons, and logistics management, enabling manufacturers to optimize their procurement and production processes.

AI Integration: The company plans to incorporate artificial intelligence into its operations to enhance procurement and supply chain management efficiency.

WhatsApp Bot: A real-time communication tool that provides instant updates on prices and stock availability, facilitating quick and informed decision-making for manufacturers.

Leadership Team

Naman Shah: Co-Founder and Chief Executive Officer. Naman has a background in economics from the National University of Singapore and experience with startups in the US and Singapore. He is responsible for the company's growth and expansion strategies.

Aakash Shah: Co-Founder and Board Member. Aakash brings over a decade of manufacturing experience, focusing on supply chain management and developing solutions tailored for metal manufacturers.

Ankan Adhikari: Co-Founder and Chief Technology Officer. Ankan is a serial entrepreneur whose previous EdTech venture was acquired by UpGrad. He joined NowPurchase in 2019 and leads the technology team.

Leadership Changes

In 2019, Ankan Adhikari joined the core team as Chief Technology Officer, bringing his entrepreneurial experience to enhance NowPurchase's technological capabilities.

Competitor Profile

Market Insights and Dynamics

The metal manufacturing industry in India is a $140 billion market, with $70 billion spent on procurement and raw materials. The sector is experiencing rapid growth, driven by infrastructure and automotive industries, with an annual increase of 15 to 20%.

Competitor Analysis

While NowPurchase operates in a niche segment with limited direct digital competitors, it faces competition from traditional large traders and organized manufacturing houses. Indirect competitors include:

Inframarket: Focuses on construction materials procurement.

Zetwork: Provides manufacturing services and solutions.

Mobilix: Engages in B2B commerce for various industries.

Strategic Collaborations and Partnerships

NowPurchase has established partnerships with various investors and stakeholders to strengthen its market position:

Investors: Collaborations with InfoEdge Ventures, Orios Venture Partners, 100 Unicorns, and VC Grid have provided financial backing and strategic guidance.

Supplier Network: Building a global supplier base to offer a diverse range of raw materials to manufacturers.

Operational Insights

NowPurchase's distinct competitive advantages include:

Integrated Platform: Combining procurement services with value-added analytics through MetalCloud.

Technological Innovation: Utilizing AI and real-time communication tools like the WhatsApp bot to enhance efficiency.

Customer-Centric Approach: Providing transparent and efficient procurement solutions tailored to the needs of metal manufacturers.

Strategic Opportunities and Future Directions

Looking ahead, NowPurchase aims to:

Achieve IPO Readiness: The company has set a goal to become IPO-ready within the next 3 to 5 years, focusing on building a profitable and scalable business model.

Expand Geographical Footprint: Continue expanding into new industrial regions across India to capture a larger market share.

Enhance Technological Capabilities: Further develop the MetalCloud platform and integrate advanced AI features to optimize procurement and manufacturing processes.