[Funding alert] Aerchain raises $3M from Season Two Ventures and IndiaMart

Aerchain, the Bengaluru-based AI tech startup focused on the procurement segment has raised $3 million in a pre-Series A round co-led by IndiaMart and Season Two Ventures.

Founded by BITS Pilani alumni - Harsha Kadimisetty and Himavanth Jasti in 2019, Aerchain, which operates on a SaaS model, will use this capital for product development, market expansion and hiring of talent.

The AI driven startup automates the entire chain of procurement which includes segments like sourcing, negotiation, contract and invoice processing.

Speaking about the platform, Harsha Kadimisetty, CEO and Co-founder of Aerchain said,

“We are in a unique space where we can provide our customers with tangible savings, efficiency gains, and intangible compliant procurement benefits.”

ALSO READ

How Aerchain (procurement tech startup) from Beer Garage – AB inBev’s global accelerator program of 2020 expanded globally within 6 months of pilot

Commenting on the investment, Sajan Pillai, Managing Partner, Season Two Ventures stated,

“The supply chain and logistics industry in India has portrayed a tremendous opportunity and scope for expansion and growth through the pandemic &  and our association with Aerchain couldn’t have come at a better time.”

Aerchain, which has been part of accelerator programme by Lumis Partners, JioGenNext and AbInBev, has clients from segments of beverage, real estate and automotive. 

“We firmly believe that technology shall play a key role in improving Indian supply chains over the coming years. Businesses in India are increasingly looking to automate their source to procure and procure to ay operations. Harsha and Himavanth bring a mix of tech capabilities and domain expertise to the business, and we are excited to partner with them,” added Dinesh Agarwal, Founder and CEO of IndiaMART.

According to Aerchain, the addressable market size for it is valued at around $37 billion which comes under the category of business spend management. The startup believes the advent of COVID-19 pandemic has exposed the technology need in the procurement segment which has led to increased adoption of digital tools.

Aerchain claims to be generating a revenue of around half-a-million-dollars in ARR and says it is EBITDA and cash flow positive. The startup believes its platform can be used in multiple sector such as pharmaceutical, manufacturing, food and beverages to name a few with the target being the enterprise customers.

Currently it has got customers only in India but now it plans to tap into the global market.