A New Approach to Reducing Delays and Inefficiencies
In the construction industry, procurement delays and inefficiencies often lead to higher costs and project overruns. Many firms still rely on outdated, manual processes that slow down operations and create communication gaps between stakeholders.
Recognizing this challenge, Aravind Maroju founded ProcureX Technologies in February 2024 to streamline procurement using artificial intelligence. In just nine months, the startup has raised $1 million at a $5 million valuationand is already making an impact.
Addressing Procurement Challenges
Procurement in construction involves multiple parties, including project managers, suppliers, and subcontractors. Delays often occur due to fragmented communication, lack of transparency, and inefficient workflows.
Maroju, who previously worked in leadership roles at Quikr, HT Media, Apollo Health, and AcuteSoft Solutions, identified these issues and saw an opportunity to simplify the procurement process. He was joined by co-founders Narsi Reddy Posham, Thej Kiran Bitta, and Bharath Reddy Deveram, each bringing expertise in technology and business leadership.
- Narsi Reddy, an IIT Kharagpur graduate, has led ventures like Smartron, OneBasket, and Ira Realty Tech.
- The team focused on creating an AI-powered platform that improves decision-making and helps construction firms manage resources efficiently.
How AI is Improving Procurement
ProcureX Technologies uses artificial intelligence to:
- Automate procurement workflows, reducing manual errors and delays.
- Predict procurement needs based on past data, preventing material shortages.
- Evaluate suppliers based on cost, quality, and delivery performance.
- Provide real-time data, giving companies full visibility into procurement activities.
Maroju explains that AI allows construction firms to make faster and smarter purchasing decisions, ultimately reducing costs and improving efficiency.
Focused on Construction Industry Needs
Unlike general procurement platforms, ProcureX is built specifically for the construction sector. It provides:
- A central dashboard for tracking orders and supplier performance.
- Automated compliance and documentation management.
- Integration with existing project management systems.
By streamlining procurement in one user-friendly platform, ProcureX helps firms avoid delays and keep projects on track.
Growth and Expansion Plans
Since its launch, ProcureX Technologies has:
- Raised $1 million in funding at a $5 million valuation.
- Gained 15 buyers and partnered with 150 suppliers.
- Expanded operations to Telangana, Andhra Pradesh, Kerala, and Bengaluru.
- Plans to enter the Middle East and APAC regions.
The startup is also considering expanding into the manufacturing sector, particularly automotive procurement.
Investing in Innovation
ProcureX Technologies continues to invest in research and development to improve its AI capabilities. Some key areas of focus include:
- Blockchain technology for transparent supplier verification.
- IoT integration to collect real-time data from construction sites.
- Augmented reality (AR) for inventory tracking.
Maroju believes that by adopting these technologies, ProcureX can stay ahead of industry challenges and continue improving construction procurement.
Impact on the Industry
Construction firms using ProcureX Technologies have reported:
- 5-7% reduction in procurement costs due to better supplier selection.
- 20% decrease in project delays related to procurement.
- 30% reduction in administrative work, allowing teams to focus on execution.
These improvements make construction projects more efficient and cost-effective.
Overcoming Challenges and Looking Ahead
Adoption of new technology in construction can be slow. ProcureX tackled this by offering workshops, webinars, and free trials to educate industry professionals on the benefits of AI-driven procurement.
The startup also developed flexible APIs and strong technical support to integrate with existing systems smoothly.
Over the next three to five years, ProcureX Technologies plans to:
- Expand into global markets.
- Introduce more AI-powered features.
- Establish itself as a leader in construction procurement.
Shaping the Future of Construction Procurement
ProcureX Technologies is solving one of the biggest challenges in construction by making procurement faster, more efficient, and cost-effective.
By combining AI, predictive analytics, and automation, the platform is helping firms reduce delays and improve project outcomes.
As the startup grows, it aims to become the go-to procurement solution for the construction industry worldwide.