What exactly is Pandapremiums.com?
Pandapremiums.com is an online, direct-from-the-factory supplier of custom manufactured corporate and promotional products. Whether it's office stationary or give-aways at trade fairs, there is a certain amount of cutomisation that goes into promotional products. That's where we come in. We procure various categories of products ranging from bags, pens, desk top accessories, ceramics, watches and apparel to bags largely from China which has a large manufacturing base and then cater to buyers across the world. We have about 800 products from these categories on our catalogue and buyers can order and pay online for these.

How large is your offline infrastructure?
We started planning the company about two years ago and have actually started operations just six months back. We have three offices - two in the US and one in Hong Kong, which are largely sales offices that make contact with potential buyers and ensure that sample pieces are shown to them. This is because buyers definitely want to actually see the products before placing an order. We plan another eight offices worldwide by next year.

Why do you think the Internet is particularly relevant to the line of business that you are in?
This is a fragmented industry on both the supply as well as demand sides. The demand is widespread, prices are high and the supply chain is often broken. The Internet helps streamline processes in this industry and most importantly translates into huge price advantages. We are able to cut anywhere between 10 per cent and 60 per cent of the current prices of these products since we've managed to get rid of several intermediaries.

Do you plan to source your products from other Asian countries apart from China? Specifically how do you rate India as a sourcing destination?
We are certainly looking at sourcing our products from other Asian countries apart from China and have been looking at India as well but China has great price advantages for us apart from the fact that it also offers a range of products, given the large export oriented manufacturing base here. So it's a combination of price and range which has made China the sourcing base right now.

How did you raise capital for this venture and what are your targets in terms of revenues for the first year of operations?
In the first round where I gave away a third of the company, the investors have been largely family and friends. I am now in the process of raising about $15 million in the second round of funding and am in talks with investors. As far as sales projections go, we target about $18 million for the first year.