Mumbai-based Bulk MRO has raised upto INR 25 Cr as a part of its new debt funding round led by venture debt provider Stride Ventures. Stride has partnered with an undisclosed bank to facilitate this deal.
The Y Combinator-backed startup offers a technology platform for the supply chain procurement needs of businesses and suppliers globally. It offers a single window marketplace for indirect, consumable and capex requirements using multi-channel distribution.
The company has aggregated over 5K brands, and 1.5 Mn products on its platform. It caters to large corporate customers that procure MRO (maintenance, repair, and operations) products in high volume. These include hardware, tools, electricals, and office supplies, which are often categorised under ‘indirect spends’, ‘category C spends’ or ‘miscellaneous spends’.
Besides this, it also has another fintech platform, Bulk Udhar, that offers supply chain financing solutions to its customers and suppliers. The company was founded in 2015 by Gaurang Shah and Devang Shah. Bulk MRO has marked its presence in the US as well, and its clientele includes several Fortune 500 companies, government agencies and healthcare networks.
With the latest investment, Stride intends to become a strategic partner of Bulk MRO and its business with their customized offerings and deep relationships across banks and corporates.
Commenting on the fund raise, Bulk MRO cofounder Shah, said, “Bulk MRO is growing exponentially in a market where the goal posts are constantly shifting. We need a partner that can adapt to the constantly changing landscape and provide financial solutions that will help us service our customers better.”
During the Covid-19 pandemic, Bulk MRO turned its attention to goods such as PPEs for corporates, governments and hospital networks in India and other countries.
Bulk MRO was part of Y Combinator’s winter batch back in 2017, along with the likes of on-demand workforce platform Playment, marketplace for authorised automotive service providers Servx, low-cost WiFi service provider WiFi Dubba,and Subscription app Supr daily.
As per Datalabs by Inc42+ estimates, B2B startups recorded a compound annual growth rate (CAGR) of 21% in the funding amount between 2015-2019, which is the highest the sector has ever witnessed. The report adds that the median funding amongst the B2B and B2B-B2C startups was $4 Mn, whereas, in the case of B2C startups, the median funding amount is $3.5 Mn.
Noting, that B2B startups are not only seeing more funding, but also bigger deals. This can also be because, Indian B2C companies on average need more than $200 Mn to achieve a $1 Bn valuation, whereas B2B companies can do that in half the capital, Pantomath Group’s managing director Mahavir Lunawat had previously said in at a seminar in TiE Mumbai.
Lunawat too highlighted that the Indian B2B segment has grown from 900 startups in 2014 to approximately 3000 startups by 2018, bagging 4x higher investments in the course of the four years.