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Pricebaba Raises Seed Investment; On Business Model, JustDial, Scaling

Price comparison service PriceBaba has raised an undisclosed amount of seed investment from five investors, led by Pune based angel investor and entrepreneur Karamveer Singh. Other investors include Dinesh Tejwani of Fast Fact Computer Systems (acquired by Thomson Reuters), Aditya Mishra (Founder & CEO, SwitchMe.in), Ashutosh Rathi (Basil Partners) and Ranjeet Walunj of The Service Solutions. PriceBaba is trying to connect mobile phone buyers directly with mobile shops, operating in Mumbai, Pune and Delhi-NCR, claiming to have over 350 verified mobile phone retailers live on its platform. The stores, according to the company, go through a two step evaluation process. The service plans to reach 10 cities in 2013. Speaking with MediaNama, Pricebaba Founder Annkur Agarwal said that the companys business model could involve lead generation - "if retailers make money (because of us), we make money from them. As we add more features, we'll have more options coming up. We're trying to solve a critical issue of searching for prices in offline stores, and whether stores have the product in stock or not. Customers today search for prices online, and go and buy offline." But why will a customer go through Pricebaba? Why won't he search online, and not go through the site? "That is already happening, but every time you see a store owners address on Price Baba, we know that someone from that location has seen it. We can talk to them about charging them." As of now, the company isn't charging retailers. Agarwal declined to comment…

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Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

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