Infosys co-founder and ex-chairman of UIDAI Nandan Nilekani has infused Rs 13 crore in 10i Commerce Services, the parent company of e-commerce platform ShopX, as reported by data platform Paper.VC.
In a statement shared with MediaNama, Amit Sharma, Co-founder and CEO of ShopX clarified that Nilekani is one of its key investors and mentors at SHOPX.” Since his first investment in April 2015, he has been backing the startup with a steady infusion of funds in tranches as well as strategic mentorship. The funding of Rs. 13 crores is part of an existing investment structure and not a fresh round of investment,” he added.
Started in May 2015, Bangalore-based ShopX enables offline retailers and smaller shop owners to sell online using its e-commerce platform. It claims to have 45,000 retailers in 230 towns across India as on May 2017. Nilekani had previously invested Rs 25-30 crore in the company in July 2016. According to this online publication, ShopX has raised a total of Rs 122 crore so far, and Nilekani has been infusing funds since April 2015 in this e-commerce startup.
The startup helps retailers with digital services as well as physical services. It helps small shop owners and other retailers to build their own customized online storefront. Sellers are assisted with in-app mobile phone/DTH recharges, listing and categorization of products, creation of custom deals and offers, and other utility apps for download within the app. Products listed by these sellers will be displayed on an app for consumers. They can place an order within the app and get it delivered to their doorsteps. It also allows sellers/retailers to see an on-demand dashboard for real-time transaction monitoring, order performance or status, route planning for delivery, and first-mile to last mile logistics management. The company provides credit options to potential retailers through SHOPX SUVIDHA.
Note that, Indian government allowed 100% FDI in B2B sector in 2012 with some restrictions. Following the policy change, several startups were setup in India within the B2B space, which saw active investments from both individual investors and venture capitalists. In this space there are B2B marketplaces like Udaan, which bring wholesalers, retailers, and traders on the platform, and also provide services for transactions like payments integration, and a logistics services. Some of the other competitions are companies like Moglix, Industrybuying, OfBusiness, Power2SME, Tolexo by IndiaMart etc. Also, while not directly, but ShopX it competes with the giants like Amazon, Flipkart and now Paytm also with its Paytm mall in the country.
Update: We have update the copy with company’s official statement