Industrybuying.com raises Rs60 crore from Kalaari Capital, others
The company is looking to use the funds to develop its technology solutions and establish nationwide sales force to target businesses throughout India
Mumbai: Delhi-based business-to-business (B2B) e-commerce company MTech Engineering Pvt. Ltd, which operates as Industrybuying.com, said that it has raised a funding of Rs.60 crore in a round led by Kalaari Capital. SAIF Partners and Beenext also participated in the round. The company raised funds in its Series A (first) round from SAIF Partners earlier this year.
Industrybuying.com, founded in 2013 by Swati Gupta and Rahul Gupta, is looking to use the funds to further develop its technology solutions, establish nationwide sales force to target businesses throughout India, increase the vendor base and develop digital offerings for B2B brands to sell online.
“We saw large and successful businesses like Grainger.com, Amazonbusiness in the US, Alibaba’s B2B transaction business 1688.com in China and realized that there was a gap in India at that time. Nobody was looking at online B2B models. We also had the advantage of a background in industrial distribution through our family business,” said Swati.
B2B e-commerce is a $500 billion market at its early stages in India, according to company estimates. The industry will see large companies in the next 2-3 years.
Industrybuying.com is an online marketplace selling industrial products to small and medium enterprises (SMEs) as well as large businesses. The company has over 15,000 registered SMEs shopping from the portal.
B2B is a different model from B2C (business-to-consumer). The products are of repeat, essential nature, customer behaviour is sticky and building the product catalogue is non-trivial.
“We are always on the lookout for breakout e-commerce and marketplace investments throughout Asia. We felt Industrybuying has what we look for—excellent team, very large addressable market, global comparable successes, and a scalable model,”said Teruhide Sato, founder and managing partner, Beenext.