Yojak, a B2B marketplace, based out of Gurugram has raised $3.8 million in a pre-series A round led by Info Edge Ventures. The other people who participated in the round are current investors Kae Capital and angel investor Arun Venkatachallam.
Construction focused international investor Fundamental and founders of B2B startups like Zetwerk, MedikaBazaar, Bizongo, and Blackbuck, and also angel investors like Anupam Mittal, Sanjiv Rangrass also partook in the round.
The company will use the funds to build teams across tech and non-tech roles, design new tech solutions, and expand into new markets and geographies.
Launched in 2019, Yojak is determined to help enable a smoother supply chain and fulfilment for small retail stores by working directly with manufacturers and supplying a full-stack value proposition starting from discovery, delivery to financing. According to the corporation it to be the only startup in the building materials sector that has created a direct loop between retailers and manufacturers on a single platform.
In the last year, the company has also made in-roads into the international markets of both developed and emerging economies with a determination on building strong brands in export markets all over the European Union, America and the Middle East.
Rachit Garg, Founder of Yojak, said, “Born in a family with a building material manufacturing business, we realised that there is a significant gap in the building materials supply chain , with most businesses relying on traditional means for supply of materials, resulting in limited accessibility. Because of the poor demand predictability small manufacturers also struggle with inefficiency in inventory cost and also an inefficiency in manufacturing overheads. We wanted to create a platform to serve to this segment and we are aiming to do so with the right team and tech solutions.”
Using proprietary technology, the company said it has developed practical solutions for every stakeholder varying from procurement, sales, logistics to operations. Yojak also considers being one of the fastest-growing startups in the B2B e-commerce segment, scaling ten times in the last year.
Speaking on the investment, Kitty Agarwal, Partner at Info Edge Ventures, said, “Yojak has been able to tech-enable an inefficient and opaque ecosystem of manufacturers, wholesalers, and small retailers in the building materials supply chain. Starting with tiles and sanitary ware, it deals in non-standard, local, unbranded supplies between local manufacturers and retailers in Tier-II,III,IV cities throughout India. These regions still struggle with access to broader catalogues of SKUs, broken fulfilment and lack of stable pricing as well as with quality assurance. Yojak’s full stack solution, right from discovery to delivery accountability, has got great response in India and important export markets. This is the youngest team we have ever supported and they have been amazing in execution.”
Gaurav Chaturvedi, Partner at Kae Capital, said, “Building materials is a huge, unorganised, and non-digitised space. Retailers in Tier II & III cities/towns still struggle with access to broader catalogues, broken fulfilment, and lack of stable pricing. We think that Yojak’s approach of providing a full-stack product right from discovery to delivery is the best way to solve this industry in the long term. We have been impressed with the team’s deep understanding of this sector and great execution, we are very happy to continue supporting them as they concur the market.”