Procol backed by Y Combinator and Surge secures funding of $5.5 million
- ByStartupStory | June 18, 2022
Procol, a B2B agricultural commodities procurement marketplace, has secured more capital from existing and new investors. The Gurugram-based firm provides procurement software to businesses and received Series A financing after a two-year hiatus.
According to Procol’s regulatory filing with RoC, the board of directors approved a special resolution to allot 1,547 pre-Series A compulsory convertible preference shares at an issue price of Rs 277,806 per share in order to generate Rs 43 crore ($5.5 million).
Existing investors Surge Ventures and Blume Ventures each put in Rs 7.75 crore, while Beenext put in Rs 6.19 crore. GMo Fintech and Vistra ITCL, two new investors, have contributed Rs 7.75 crore and Rs 2.5 crore, respectively. The remaining funds have been contributed by more than a dozen investors, including MarsShot Ventures, an early-stage focused firm founded by Razorpay personnel.
In July 2020, the business secured around $4 million from Sequoia’s Surge, Singapore-based Beenext, and Blume Ventures. The news was initially reported by Entrackr. To far, it has raised about $11 million, with a $1 million seed round in 2019 and a $100K grant from Y Combinator in 2018. Rainmatter by Zerodha also competed in the seed round.
The Series A round looks to be ongoing, and the business might raise further funds. The business has raised the new capital at a post-money valuation of $75 million. Procol is a four-year-old business that has yet to generate significant income. According to Procol’s annual financial statement, income fell by 48% to Rs 57 lakh in FY21, while losses increased by 3.6 times to Rs 2.6 crore.
Procol is a mobile-based all-in-one procurement programme for agricultural, logistics, direct material, and other industries, founded by Gaurav Baheti and Sumit Mendiratta. The firm eliminates brokers from the chain, bringing buyers, sellers, brokers, and traders under one umbrella. Bigbasket, Cremica, BlinkIt, Emami, and 70 additional clients use Procol’s platform to access a network of 25,000 suppliers.
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