IndiaMart and NinjaCart, two India-based business-to-business e-marketplaces, recently cashed in on some fresh venture capital funding, benefitting from an ongoing trend of investing in India’s online business industry.
IndiaMart, a general merchandise marketplace, says it received a Series C round of funding on March 7, but didn’t immediately respond to a request to specify the amount. The company says it will use the funds to expand its IndiaMart e-marketplace, and its subsidiary marketplace Tolexo.com, which connects primarily Indian business buyers with more than 5,000 global suppliers.
“As pioneers in this field, we understand that there lies a huge untapped opportunity with India micro- small- and medium-sized enterprises, as well as big corporate buyers who consolidate their forces through IndiaMart,” founder and CEO Dinesh Agarwal says. “The Indian B2B sector itself is set to grow by 2.5 times, and touch $700 billion by 2020. Given the socio-political and environmental forces in the country, we foresee larger strides being taken by MSMEs in the coming years. We are elated that we share the same synergies with our new investors.”
IndiaMart.com connects more than 24 million primarily Indian buyers with 2.1 million global suppliers. 63% of IndiaMart’s visitors on IndiaMart.com reach the site through its mobile app, the company says. That amounts to 8.5 million monthly website visitors arriving from its mobile app, as IndiaMart attracts 13.5 million total monthly visitors according to web analytics firm SimilarWeb. Approximately 5 million users have downloaded the IndiaMart app, according to the Google Play store.
More than 30 million products are featured on its site and organized into 52 categories, including: Rail, Shipping and Aviation; Travel, Tourism and Hotels; and Financial and Legal Service.
Suppliers pay a fee to register on the site, depending on the number of products listed, the web domain option chosen and services requested. Suppliers can purchase buyer leads, a product and corporate verification service, video production service and increase their ranking on IndiaMart’s product listings section for an undisclosed fee. Buyers register for free on IndiaMart.
IndiaMart previously raised approximately $64,000 in funding, according to The Times of India newspaper. Leading this funding round were Amadeus Capital, Westbridge Capital, the Accion Frontier Inclusion Fund and Intel Capital.
Ninjacart, another Indian B2B marketplace that connects farmers and food brands to retailers, raised $3 million in Series A funding led by Accel Partners on March 7. The company says it will use the capital infusion to expand its team, supply chain infrastructure and technology.
“Due to marginal farming, poor logistics and zero market information, there are numerous middlemen involved in getting farmers’ produce to markets,” says Thirukumaran Nagarajan, co-founder of Ninjacart. “The farmer only gets a fourth of what the consumer pays. We try to solve these problems by bridging the gaps so that the farmer gets a good value for his produce and the stores get quality goods at competitive prices.”
Since the company’s May 2015 launch, Ninjacart has supplied more than 15 tons of produce daily to more than 120 Indian retailers, the company says. The company declined to comment on its revenue model.
Other firms that participated in this round of funding include Qualcomm Ventures, M&S Partners and Zop Smart.
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