Industrybuying, a B2B online retailer has raised $9 million in recent Series B round of funding led by Kalaari Capital along with existing investors SAIF Partners and BEENEXT. Further to the funding, Sumit Jain of Kalaari Capital has joined as board member of the company.
Founded in 2013 by brother and sister Rohit and Swati Gupta, Industrybuying.com is a Indian-based online marketplace for industrial materials. This platform aims to meet buying needs of small enterprises and offline businesses in many sectors like hospitality, manufacturing and construction sectors. With supplier base around 2000, it serves many big clients like Motherson Sumi, Havells, RPG, Honeywell, Siemens, Tata Power and Escorts.
The co-founder of Industrybuying.com Swati Gupta said, “We saw large businesses like Grainger.com, Amazon in the USA, 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 model. We also had the advantage of background in industrial distribution through our family business. We launched the platform in 2013 and since then there has been no looking back.”
The startup has adopted a zero inventory model for their business. It sources products from vendors and ships to customers who order through the website. With the fresh funds, the company plans to expand its e-commerce platform, setup a nationwide sales force, widen the vendor base and introduce a full suite of digital offerings for B2B brands.
“We are excited about the B2B e-commerce in India. We have watched Industrybuying.com take the lead in this space and are glad to become a part of its growth journey. We hope to leverage our learning from B2C e-commerce and apply them to this wave of disruption in the B2B space,” said Vani Kola, managing director of Kalaari Capital.
The industrial supplies market is hugely fragmented and unorganized, but many startups have cropped up in this space with backed up funding to bring uniformity to this crucial industry segment like how many e-commerce sites brought over regularized product pricing. Apart from Industrybuying.com, Tolexo.com has a position in the market. Part of IndiaMART InterMESH Ltd, Tolexo operates an online B2B platform for small and medium businesses connecting global buyers with suppliers under the brand IndiaMART.