In the vast and growing construction industry, procurement remains one of the most critical yet challenging aspects. Projects often face delays, budget overruns, and inefficiencies due to fragmented communication, lack of transparency, and heavy reliance on outdated manual processes.
These issues result in a significant impact on schedules and costs, making the smooth execution of construction projects difficult.
With numerous stakeholders involved, from project managers and procurement teams to suppliers and subcontractors, streamlining these processes has been a long-standing issue that the industry has struggled to address.
Recognizing these inefficiencies, Aravind Maroju saw an opportunity to leverage technology to achieve a transformative solution. “In the construction industry, I observed several inefficiencies such as fragmented communication, lack of transparency and slow procurement processes,” says Maroju.
After having extensive conversations with industry professionals and drawing on his own experiences, Maroju realized that many of the delays and budget challenges were due to poor procurement practices. The solution was clear: create a platform that not only automates and streamlines these processes but also offers insights that adapt to the dynamic nature of construction projects.
With a strong motivation to resolve this fundamental question, Aravind Maroju founded ProcureX Technologies in February 2024.
The startup aims to address major inefficiencies in construction contracting by introducing an AI-powered platform specifically designed to optimize these processes.
On this trip, Maroju was joined by Narsi Reddy Posham as a co-founder, a serial entrepreneur with a strong background in technology and leadership.
Together with him, Thej Kiran Bitta and Bharath Reddy Deveram also joined as co-founders, each bringing their expertise to help shape the future of ProcureX Technologies.
Narsi Reddy has a Master’s degree in Computer Science from IIT Kharagpur and has successfully run several companies including Smartron, OneBasket and Ira Realty Tech. Her experience spans across different industries, where she has used technology to build and grow businesses.
The goal was simple but powerful: use artificial intelligence and data analytics to improve decision-making, improve resource management, and provide companies with actionable insights that can lead to more efficient project execution.
Before the foundation ProcureXMaroju held several senior leadership positions at notable companies such as Purpleplum, Real Variable, Zaggle Prepaid Ocean Services, and AcuteSoft Solutions. He also worked at Quikr, HT Media and Apollo Health.
“The need for an AI-powered procurement platform became evident through conversations with industry professionals and my own experiences. By integrating AI, our goal was to optimize these processes, improve data analysis and improve decision making,” said Maroju.
Their vision translated into a centralized platform that could consolidate procurement activities, enabling seamless communication and collaboration between all stakeholders involved, including project managers, procurement teams and suppliers.
Transforming procurement with AI
ProcureX Technologies addresses several of the most pressing inefficiencies in construction contracting. Fragmented communication and lack of transparency often cause significant project delays and overruns. By using AI to integrate and optimize workflows, the startup closes these gaps.
The platform automates repetitive tasks such as order creation, approval workflows, and invoice processing, significantly reducing manual errors and speeding up the procurement cycle.
“AI has the potential to transform the construction procurement space in several ways. From predictive analytics and intelligent decision making to better supplier assessment and risk management, our platform is designed to provide a comprehensive solution,” explained the founder.
The platform’s AI-powered capabilities allow it to analyze historical data and forecast procurement needs, helping construction companies optimize their inventory and avoid unnecessary delays.
Additionally, AI algorithms evaluate various factors, such as cost, quality, and delivery times, recommending the best procurement options. This enables smarter, data-driven purchasing decisions that ultimately improve project outcomes.
Offering tailored solutions for construction.
What sets ProcureX apart is its specialization in the construction industry. Unlike traditional procurement solutions, which often offer generic features, the startup focuses specifically on meeting the needs and challenges of construction professionals.
“ProcureX consolidates procurement activities into a single, easy-to-use interface, integrating artificial intelligence algorithms that analyze historical data and market trends to obtain predictive insights,” highlights Maroju.
The platform provides access to real-time data, giving users better visibility into procurement processes, order statuses, and supplier performance. By centralizing all procurement-related activities, it ensures seamless communication and collaboration between all stakeholders, improving efficiency and transparency across the board.
Additionally, with robust supplier management tools, the platform evaluates and rates suppliers based on performance metrics, allowing construction companies to make well-informed decisions about who they work with.
Financing and market valuation.
Having raised close to $1 million in seed funding at a valuation of $5 million (Rs 40 crore), ProcureX Technologies has quickly gained traction in the market.
With a customer base that includes 15 buyers and partnerships with 150 suppliers, the startup claims to have expanded its operations to four states including Telangana, Andhra Pradesh, Kerala and Bengaluru.
Beyond India, it plans to expand further, focusing on entering international markets such as the Middle East and Asia-Pacific (APAC) regions.
Additionally, the platform is considering diversification within the construction sector, including expanding its solutions to the manufacturing industry, particularly automotive.
Prioritize R&D
According to Maroju, ProcureX Technologies invests heavily in research and development (R&D) activities and explores emerging technologies such as blockchain, IoT, augmented reality (AR) and natural language processing (NLP).
“We are prioritizing R&D to explore technologies that can enhance our AI capabilities, ensuring our platform remains relevant and effective for the construction industry,” he said.
Blockchain technology, for example, is being explored for smart contracts and decentralized supplier verification, improving transparency and accountability in procurement processes.
Additionally, IoT integration could enable real-time data collection from construction sites, feeding valuable information to AI algorithms to improve procurement decision-making.
By leveraging these technologies, the startup aims to remain adaptable and provide its users with the most relevant and innovative solutions.
Since its launch, ProcureX Technologies has provided substantial benefits to its users. Maroju said builders, contractors and subcontractors have reported a 5-7% reduction in procurement costs due to more effective supplier selection and negotiation processes driven by the platform’s AI-based insights. .
Additionally, the platform’s transparency has led to a 20% decrease in procurement-related project delays. Users have also experienced a 30% reduction in time spent on administrative tasks, allowing teams to shift their focus toward strategic decision making, positively impacting project outcomes.
Navigating challenges
For ProcureX Technologies, market adoption has been a major hurdle, as the construction industry has traditionally been slow to adopt new technologies.
“Convincing stakeholders to adopt an AI-powered platform was a challenge. “We focus on education and real-world success stories to demonstrate the value of the platform,” he said.
Through workshops, webinars, and free trials, the startup managed to build trust and encourage user adoption.
Integration with existing systems also presented technical challenges. To address this, the startup developed flexible APIs and robust technical support, ensuring smooth integration and user onboarding.
Over the next 3-5 years, ProcureX Technologies aims to solidify its position as a leader in the construction procurement space through strategic expansion, continued innovation and a user-centric approach.
“By focusing on delivering a feature-rich platform and fostering strong relationships with our users, we aim to drive significant improvements in procurement processes and contribute to the overall success of the construction industry,” said Maroju.
“Our long-term vision is to equip construction professionals with the tools they need to thrive in a rapidly evolving landscape,” he added.
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