Industrybuying.com, B2B e-commerce company that deals with industrial supplies, is hoping to raise $30 million in a third round of funding in 2016. “We are planning to raise money this year and we will be in the market in June-July,” Swati Gupta, co-founder of Industrybuying told FE.
The company raised seed funding of $2 million from SAIF Partners in February 2015 and additional R60 crore from Kalaari Capital in September.
Other B2B marketplaces include Ninjacart, TradeIndia, Power2SME, eleB2B and Indiamart’s Tolexo.
“We are seeing a lot of interest in B2B e-commerce and we expect strong investment activity in this space in the next 12 months,” said Sumit Jain, Partner at Kalaari Capital.
Industrybuying is also operating brand stores which helps it manage demand for branded industrial products. Over the course of next two months, Industrybuying will be launching more branded stores.
Industrybuying operates on a hybrid model where its procures supplies for its large enterprise customers such as Hindustan Unilever, Havells, Bombardier, and Motherson Sumi but serves as a pure marketplace for smaller businesses.
“Around 60% of our total business is led by SMEs and 40% by enterprises. The advantage of the SME platform is that it gives you the scale and helps you meet the GMV targets and the enterprise platform gives you the stickiness and the repeat buyers,” Gupta said.
“We make about 13-15% commission on every transaction,” Gupta said. She pegged average ticket size of a transaction at R5,000 and said the platform clocks about 400 transactions daily. The company claims to have clocked a GMV of $1 million for the financial year ended March 31, 2016 and it expects to achieve GMV of $2 million by November 2016.
The platform claims to have a customer base of 50,000 businesses and 3,000 sellers.
In line with financial services provided by e-commerce platforms such as Flipkart, Snapdeal and Askmebazaar, Industrybuying will also be rolling out its facility by June and Gupta expects 10% of its consumer base to convert as credit seekers. “The third party financial institution could be disbursing between R1 lakh to R20 lakh worth of credit,” she added.