Gurgaon-based OfBusiness, an online marketplace for business-to-business (B2B) ecommerce, has raised $11 million in its series B round of funding led by Zodius Technology Opportunities Fund, and participation from existing investors Matrix Partners & other angel investors, reports Vccircle. The company will use the funding to expand to other locations and introduce other goods like consumables.
Earlier this year, OfBusiness had raised $5 million in funding from Matrix Partners India and angel investors like Apoorva Patni, Bhavish Aggarwal, and Prashant Malik. As of now, the ecommerce platform offers free registration and listing for sellers along with logistics support for delivery of orders. For buyers, OfBusiness provides credit provisions through tie-ups with several financial institutions.
Currently, the platform lists products in steel, TMT, cement and various polymer and claims to sell in 10 states. It also claims to list over 1000 distributors and manufacturers of items as sellers, and publishes a blog with industrial tech guides, prices of goods in different locations, industry relevant news and various guest posts. Other startups in this space include Power2SME and Moglix which mostly focus on industrial or SME level buying and selling.
B2B marketplace in India
The Indian government allowed 100% FDI in B2B sector, with some restrictions, back in 2012. Following the policy change, several startups were setup in India as the B2B space saw active investments from both individual investors and venture capitalists.
Currently the B2B industry in India is led by companies like Tolexo which claims to have over 7,000 sellers listing over a million products and IndiaMart which claims 26 lakh sellers listing over 4 crore products. B2B giant Alibaba is also operational in India and had opened global reselling to Indian merchants last year. Amazon India also launched its B2B supply services for SMEs in India last year and committed an investment of Rs 115 crore into the unit in September. Walmart had launched its B2B marketplace in India back in 2014.
Apart from this some notable startups in the B2B space include VegFru, an online B2B marketplace that connects small and large farmers with suppliers. Similarly, Ninjacart helps supermarkets, kirana stores and small shops to buy fresh fruits/vegetables, and FMCG products from farmers and independent brands. Udaan, which raised $10 million last month, currently deals with mobile accessories and fashion products.