How a Pune-Based Startup is Digitising Raw Material Procurement for Over 10,000 Indian Manufacturers
In India’s manufacturing sector, raw material procurement has long been mired in outdated practices—largely offline, opaque, and dependent on middlemen. For thousands of small and medium-sized businesses, this means grappling with inconsistent pricing, unreliable delivery schedules, and limited access to credit.
Despite nationwide efforts to push digital transformation, industrial procurement has remained one of the last frontiers of modernization.
Enter Source. One
Founded in 2018, Source.One is a Pune-based startup on a mission to digitise procurement—starting with polymers. What began as a simple WhatsApp-based ordering model has evolved into a robust, tech-first platform that now powers supply chains for over 10,000 manufacturers across all 28 Indian states.
By unifying real-time pricing, logistics, and credit into a single digital ecosystem, Source.One is quietly but fundamentally transforming how Indian industry sources its raw materials.
From a Simple Idea to a Digital Backbone
The idea for Source.One took shape when co-founders Arun Singhal, Shrinath Balakrishnan, and Rohit Parmar noticed how fragmented and informal procurement was for small manufacturers. Orders were typically placed through phone calls or face-to-face interactions, pricing was inconsistent, and delivery timelines were often missed.
To challenge this norm, they launched a lean, WhatsApp-driven model where buyers could simply message their requirements, and Source.One would handle the sourcing, logistics, and delivery. This hands-on approach helped the founders deeply understand customer pain points and laid the groundwork for a fully integrated digital procurement solution—designed around speed, trust, and transparency.
Today, manufacturers can use the Source.One app to browse live prices, track deliveries in real time, apply for credit, and manage their entire buying journey with minimal friction.
“With the Source.One app, buyers have everything they need—from sourcing and pricing to logistics and credit—at their fingertips.”
Building a Nationwide Network on Predictability
Unlike traditional distributors who operate with manual processes and siloed regional networks, Source.One has built a tech-enabled ecosystem that connects over 800 verified suppliers and 600 logistics partners across India.
Delivering over 200,000 metric tons of material annually, the startup has scaled efficiently and strategically. It’s not just about volume—it’s about operational precision powered by technology.
The platform offers live pricing, order tracking, and instant customer support through both the app and WhatsApp. AI-driven freight modeling optimizes dispatch planning, while GPS tracking and dedicated transporters on high-frequency routes help reduce turnaround times and bring much-needed reliability to the logistics chain.
Expanding the Product Portfolio
Having established a stronghold in polymer procurement, Source.One is now active across three chemical supply chains and has plans to further expand within chemicals before venturing into metals and agriculture.
A notable addition to its offerings is SourcePlus, a subscription service that delivers market insights, price forecasts, and trade trends. This empowers manufacturers to make informed, data-backed procurement decisions—moving away from guesswork and toward strategic buying.
With SourcePlus, Source.One is positioning itself not just as a sourcing platform, but as a decision-support system for Indian manufacturers.
Aiming for 2.5x Revenue Growth
“Our investors saw more than just a business opportunity—they saw the potential to solve a deeply rooted problem in India’s manufacturing ecosystem,” say the founders. “Fragmented supply chains, volatile pricing, and limited accessibility for small players—that’s the real challenge we’re tackling.”
Backed by strategic investors, Source.One has benefited from industry partnerships, structured financing, and crucial introductions that have propelled its growth.
Despite operating in a capital-intensive sector, the company maintains a lean, asset-light model focused on automation, efficiency, and profitability. It has already achieved operational profitability in multiple regions and now targets 2.5x revenue growth and 5x profitability in the next 2–3 years.
India First, For Now
While Source.One has built national scale and growing momentum, it isn’t rushing to go global. “India’s manufacturing ecosystem is vast, complex, and full of untapped potential. There’s still so much value to unlock here before we look abroad,” the team says.
For now, the focus remains on deepening capabilities—enhancing freight models, expanding into more verticals, and building smarter procurement tools to power India’s industrial growth.
