The round also included individual investors and family offices such as Shikhar Raj, Real Ispat Group, Madhur Gupta of Lloyds Group, VC Grid and Professor Kartik Hosanagar.

The round brings fresh growth capital for a business trying to modernise how metal manufacturers buy raw materials and manage production, at a time when industrial supply chains are under pressure to become faster, cleaner and more transparent.

Founded in 2017 by Naman Shah and Aakash Shah, NowPurchase helps metal makers source scrap, alloys and additives, while also running scrap processing centres and branded product lines.

The company's software layer, MetalCloud, uses connected sensors, or IoT, and computer vision to help factories digitise and optimise production. That mix of procurement and technology is central to its appeal, because the metal sector is often fragmented, with inconsistent pricing, quality and supply visibility.

"This investment will accelerate our investment in R&D capabilities and scrap recycling infrastructure to drive innovation and create meaningful value for our customers… NowPurchase is well-positioned to double down on its core operations and continue scaling with strong unit economics," said Naman Shah, Founder and CEO of NowPurchase.

Co-founder Aakash Shah noted the funding will accelerate the expansion of MetalCloud, the company's AI platform designed to digitise and improve metal manufacturing operations, adding that the firm believes AI can significantly transform shop-floor processes.

The emphasis here is on the shop floor, the place where goods are actually made, and on using AI to spot patterns, reduce waste and improve consistency rather than replacing human decision-making.

The investors also signalled confidence in that direction. Bajaj Alternates' Lakshmi Iyer said Bajaj Alternates is investing at a key stage in NowPurchase's growth, citing its nationwide presence, global ambitions and AI platform as strong drivers of change in metal manufacturing, while Girish Jhunjhunwala noted the investment reflects confidence in technology-led efficiency and supply chain resilience, with a focus on supporting the company's long-term growth.

With this latest infusion, NowPurchase has raised about Rs 120 crore ($14.46 million) in total equity funding to date. In 2024, it secured $6 million in a combination of equity and debt financing, with Info Edge venturesleading the round.

The funding comes at a time when investors are increasingly backing technology-led B2B procurement and supply chain platforms in manufacturing and metals, a sector that has traditionally been fragmented and dependent on offline relationships.

Companies such as Zetwerk, OfBusiness and Metalbook have attracted investor interest in recent years by using digital platforms to streamline sourcing, financing and production.

Recently, Zetwerk kicked off its IPO plans with confidential SEBI filing, while platforms such as OfBusiness and Metalbook are building full-stack models that combine procurement, credit, logistics and data-led manufacturing services.

Much of India's industrial procurement is still localised and manual, which leaves significant room for technology platforms that bring transparency, price discovery and supply chain reliability.