IndiaMART all set for first round of funding for expansion of online B2B services

New Delhi, January 30, 2001. IndiaMART.com, one of the first Indian B2B online marketplaces, is all set for the launch of its transaction enabled B2B platform, and will simultaneously go for its first round of funding in the first quarter of year 2001.

Having formed strategic alliances with YourImporter.com, Texas and SGS, Geneva for its online B2B transaction platform, IndiaMART is in a process of talking to venture capitalists for its first round of funding. The company plans to raise a capital to the tune of $3-5 million to be invested in new technology & payment solutions and online marketing of its B2B services. It also proposes to add to its existing network of marketing offices strategic Indian locations with high density of export-oriented businesses, as well as offices at overseas locations.

"Unlike most Net-based ventures that rely on seed-capital to take off, we have religiously done our homework in last five years to build a successful self-sustaining online B2B marketplace, making increasing profits year after year. It is now, after we are ready with our B2B online transaction platform with an established base of international buyers and sellers, that we have decided in favour of external funding in order to accelerate our growth plans in the coming months," says Mr Dinesh Agarwal, CEO, Indiamart Intermesh Ltd.

IndiaMART was started in 1996 with a small personal investment by Mr Dinesh Agarwal, a software engineer belonging to a trading business family, who had returned to India after having worked with AT&T and Novell in the US, to start his own venture. The company, today known as IndiaMART InterMESH Ltd., engages over 145 professionals and operates through its head-office in Delhi and branch offices in Mumbai and Bangalore, supported by a nationwide network of marketing & service franchisees.

Incorporated as one of the first online business directories in the country in association with ASSOCHAM, Indiamart.com today holds India's largest B2B database with over 60,000 listed businesses and more that 1000 B2B catalogues in place under 450 product/service categories. Currently, over five lakh international buyers visit the portal every month, accounting for more than 5 million pageviews on the portal, representing one of the highest figures in the world in the B2B segment. Indiamart.com generates more than 1,00,000 trade queries every month through which its member businesses are estimated to have conducted a business worth Rs 600 crores in the last financial year alone. The marketplace has a strong client base in the Indian SME segment engaged in international trade. Having built several B2B vortals for key Indian industries, Indiamart commands a strong presence on popular international and Indian search engines, which it has developed through the years by way of strategic online promotion.

The new B2B transaction platform will offer facilities like B2B reverse auctioning, ETOs (Electronic Trade Offers), RFQ/RFP (Request for Quote/Request for Proposal) along with business support services like business finance, logistics, insurance etc. to facilitate online trade.

"Our new online platform offering B2B catalogues, auctions, trade offers and other online business support services will bring online the 'action' that was so far being initiated at indiamart.com, but being finalised offline in the form of an offline B2B transaction. This will make the entire process more efficient and beneficial for participating businesses, whereby sellers will get the highest price for their inventory and buyers will be able to interact with multiple sellers at the same time for their business requirements," adds Mr. Agarwal.

In order to ensure a lucrative market of foreign buyers on its platform, Indiamart.com has made a strategic alliance with its US counterpart- YourImporter.com, a conglomerate of importers in the US. YourImporter.com will post purchase requirements of its member importers exclusively on Indiamart's co-branded online platform, thereby generating huge business potential for Indian suppliers, who will thus be able to participate in the reverse bidding process.

The platform will also offer buyer verification and sampling services online to participating members through a tie-up with global verification giant SGS (Société Générale de Surveillance, Geneva) to help build trust in online trade. Indiamart is already talking to ICICI and Citibank for provision of online payment gateway services for B2B transactions through the portal.

A conservative estimate by the company reveals B2B transactions worth Rs 1,200 crores through the portal in the current year, resulting from estimated 3000 online auction deals. In addition, Indiamart is confident of achieving atleast 2,500 online catalogues of member businesses on the portal by the end of the year, making Indiamart.com the largest Indian B2B portal, not far behind those largest in the world.

"The mission of the company remains to create maximum value for B2B clients for their business promotion, process support and transaction accomplishment needs through innovative use of web-based technologies and strategic service partnerships," emphasises Mr Agarwal.

Reference URLs:
http://www.indiamart.com
http://www.intermesh.net

For further information, Click here