Ahmedabad-headquartered ecommerce major Infibeam has sold its subsidiary Infinium India Ltd (IIL) to Ingenius E-commerce Pvt Ltd, which runs Tradohub, a B2B aggregator for industrial goods, in a deal worth $8.4 Mn (INR 60 Cr).
In a BSE filing, Infibeam said that Infinium contributed 10.51% of its consolidated turnover and 0.31% of consolidated net worth of the company. The company provides ecommerce solutions to government and private institutions with a focus on semi-urban and rural India using V-SAT connectivity.
With the acquisition of IIL, Tradohub expects to strengthen its technology capabilities and expand the existing merchant base and distribution across other product segments including but not limited to IT products, appliances, software, consumables and services.
Founded by Akash Domadiya and Harsh Patel in 2014, as a bootstrapped startup Tradohub is an online distributor of sorts which is making procurement of raw materials easy, efficient, and economical for Indian Small and Medium Enterprises (SMEs).
It does this by aggregating demand, removing the middleman, partnering with global suppliers, and integrating technology to make procurement a hassle-free, single-click experience.
In a statement, Tradohub emphasised that IIL has strong engineering team with an excellent track record in design and implementation of large technology solutions involving hardware, software, satellite and digital communications.
Akash Domadiya, chairman of Ingenius E-commerce said, “The acquisition of IIL will help the company accelerate growth by targeting SMEs in consumer-focused sectors where there are significant momentum and an opportunity to serve the growing requirements.”
He also shared that at present, the majority of IIL revenue comes from trading and distribution of consumer products.
Tradohub claims to grow at more than 50% YoY with annual revenue of $41.9 Mn (INR 300 Cr) in FY18. In the last three years, the company has registered more than 10,000 SMEs across several product segments like food and agriculture, polymers, chemicals, pharmaceuticals, metals and others.
The company has also integrated with over 1,000 supplier networks across more than 75 countries to expand the footprint to better serve SMEs requirements.
Earlier, talking to Inc42, Domadiya had shared that Tradohub continues to report positive EBITDA and PAT (Profit After Tax). The startup caters to a diverse range of customers from Gujarat, Madhya Pradesh, Maharashtra, Rajasthan, Punjab, Delhi and Haryana, about 65% of whom are regular customers.
With an average order size of $7,418 (INR 5 Lakh) in 2014 to $37,089 (INR 25 Lakh) in 2017, Tradohub has come a long way. With plans to raise $10 Mn funding, Tradohub was also planning to expand its market in central and south India.
The overall B2B market size is expected to grow to around $700 Bn by 2020, according to an April 2016 report by the Confederation of Indian Industry and Deloitte. With the acquisition and merging of synergies between IIL and Tradohub, the B2B market promises a larger market share for the companies.