JSW One Platforms, the e-commerce venture of JSW Group, has raised Rs 205 crore in Series A funding from Japanese investor Mitsui & Co, valuing the firm at over Rs 2,750 crore. The company, which expects to break even by FY27, will also start working on its initial public offering (IPO) by FY27-28.

JSW One Platforms, a technology platform venture, has two business divisions — JSW One MSME (a B2B venture) and JSW One Homes (a B2C venture) — and had started operations with an initial corpus of Rs 250 crore in April 2021.

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“Mitsui’s decision to invest in our e-commerce business validates our long-term strategic vision to capitalise on technology to take a strong leadership position in the B2B e-commerce sector. India has over 500,000 building and manufacturing MSMEs, and as this number grows JSW One aims to cater to all their building materials requirements through our advanced and technology-enabled products and services,” JSW One Platforms director Parth Jindal said.

Speaking to FE, JSW One Platforms CEO Gaurav Sachdeva said the company will utilise the funds to strengthen its market presence and enhance tech capabilities. The company plans to expand operations to newer geographies such as the National Capital Region, Gujarat, Rajasthan, Madhya Pradesh and Chhattisgarh.

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The funds will also be used to invest in credit, logistics and technology stack to improve customer experience, he added.

The company is expecting to exit FY24 at a gross merchandise value — a financial metric to gauge the total value of sales of an e-commerce firm — of $1 billion (·8,000 crore), of which 15% would come in from non-JSW brands.

“We expect to achieve break-even by FY27. At present, we have more than 10,000 stock keeping units (SKUs) across steel, cement, paints and other allied categories, and we intend to increase it to 25,000 by FY24. Further by FY31-32, JSW One Platforms would be contributing 20% of JSW Group’s total revenues,” Sachdeva said.

The company is also betting big on the MSME segment as there is a significant growth happening in the segment, he added.