Oliphans Capital, angel investors invest in XSTOK
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New Delhi: Early-stage investment firm Oliphans Capital and a group of undisclosed angel investors have invested Rs.3 crore in XSTOK, a business-to-business platform to sell surplus textile goods, it said in a statement on Thursday.
It will use the fund to expand its reach to a larger target audience. The start-up was founded in January by Sanjiv Khandelwal and Mihir Shah. While it is designed to service multiple industries, it currently is active in the textile industry.
According to the company, the Indian textile industry generates $6 billion worth of surplus every year. The industry for surplus products is fragmented and lacks transparency in cost. While the suppliers are unable to realize the right market price due to the current sale process and limited buyer ecosystem, the buyers lack direct access to suppliers, transparent prices and most of all range of products available.
“XSTOK aims to solve this problem. It ensures transparent pricing, secure transactions and a large market for the seller. For buyers it provides access to much larger real-time inventory of surplus, irrespective of their location,” said Shah.
Khandelwal has over 20 years of experience in developing and running business-to-business marketplaces and e-auction platforms. Shah has worked with Bank of America-Merill Lynch as an investment banker. He has over 13 years of work experience.
XSTOK charges the suppliers a listing fee and a transaction fee for every successful transaction. So far, it has 130 sellers, which includes names like Arvind Mills, Welspun Group, Mafatlal, Bombay Dyeing and Garden Vareli. It also has 4,000 registered buyers from across the country.