Delhi-based startup venture industrybuying.com is set to raise $15 million in Series A round of funding through its existing investors SAIF partners and other venture capitalists.
Industrybuying.com is a MTech Engineering Pvt Ltd that sells industrial raw materials and goods to companies online. It deals with B2B products such as industrial automation, machine accessories, auto accessories to sawing and cutting tools, motors and power transmission to pneumatic. The company deals with more than 900 brands and has more than 2000 suppliers.
The sales growth of the increasing at a good pace. It is said to doubling every month. The company is look out for funding to expand its business, back-end operations and make technological advancements. The startup is looking forward to start operations in Mumbai, Pune, Bangalore, Chennai and Ahmadabad or Suart to add-on to their offering and delivery system.
Swathi Gupta, Director of industrybuying.com said, “We would be raising $10-15 million in couple of months to strengthen our offerings and product range. We are in the process of that. We would set up more bases to speed up delivery process and business.” She added, “SMEs are our primary customers. Business comes from electrical goods, power tools, materials, utilities, safety tools, office furniture segments.”
Earlier this year, the startup raised $2 million from one of the top venture capitals, SAIF Partners along with others like makemytrip.com, justdial and Paytm. It has omnipresent channels that includes online, offline (corporate) clients like Motherson Sumi, Havells, RPG, Honeywell, Siemens, Tata Power and Escorts and also over phone. The usual value of the transactions made over phone is around $200.
Founded by siblings Rahul Gupta and Swati Gupta in 2013, the startup follows the simple business model of zero inventory where the e-commerce merchant sources products from its vendors and ships to the customers who orders through the site. In short, it works like a middleman. The founders noticed that gap between the industrial products and e-commerce and so launched their company. The market for these product is huge. The Industrial sector forms 28% of GDP against retail that forms 14% GDP. This is the first company to address the gap in India while there are companies like Grainger.com and Amazonsupply that functions in USA.
They have teamed up with logistic company like Bluedart, Delhivery and IndiaPost for delivery of the goods. Gupta said, “We have entered into tie up with some transporter for execution of last mile delivery of the consignment. They are expert in industrial transportation. Some of them also offers cash on delivery.” Once the order is placed through the website, the company takes around two to seven working days to transport and deliver the consignment to its customers. Also, the company is working to expand its workforce from 65 to 100 in the forthcoming months.