Infrastructure financing major Srei Group on Thursday formally launched a digital marketplace startup, christened as ‘iQuippo.com’, in order to tap growing infrastructure equipment markets in India and overseas.
The digital platform, sponsored by Srei, allows buyers and sellers in infrastructure equipment sale and rental space to transact assets and services. It is also in the process of tying up with banks and financial institutions in order to provide financing solutions to the equipment buyers.
Srei Infrastructure Finance vice chairman Sunil Kanoria said the Group will provide the required funds that will be needed for this new venture to expand business.
“We will provide whatever resources it will need in the future,” Kanoria said. He, however, declined to divulge details on the amount initially invested in the startup.
According to him, the digital platform will offer ‘total solutions’ for all types of construction and mining equipment for buyers and sellers across domestic as well as international markets. “We have been witnessing a very good growth in the country’s infrastructure equipment space in the last six months on the back of new policies and government spending. We expect in the next four years we will see an exponential growth in this sector. Total market size of infrastructure equipment in India is expected to reach over Rs. 50,000 crore by 2020,” Kanoria said.
He said iQuippo will also aim to tap overseas markets like Middle East, Africa and South East Asia, where infrastructure equipment business was growing at a good rate.
According to Devendra Kumar Vyas, CEO, financial services, Srei, the startup is the Group’s ‘strategic initiative’ to capitalise on the growth opportunity in infrastructure space globally.
Revenue model for this marketplace is based on transaction fees, and the Group expects this new venture would be ‘revenue positive’ by the next two years.