Bengaluru-based assisted ecommerce startup ShopX, run by 10I Commerce Services, has received $15 Mn from Fung Strategic Holdings. The second tranche comes as a part of the $35 Mn funding the company raised in August 2018.
Out of $35 Mn, the company had received its first tranche last year with INR 22.12 Lakh equity push and $15 Mn (INR 102 Cr) being preference shares.
According to the Ministry of Corporate Affairs filings accessed by Inc42, the issue price for the second tranche, which came this month, was $359.90. With this tranche, Fung’s stake in ShopX has reached 32.69%. The development was first reported by Paper.vc.
Prior to this round, the company has raised more than $50 Mn in multiple funding rounds from investors such as Nandan Nilekani.
ShopX: 8 Mn Customers, 50K Transactions Per Day
Launched in 2015 by Amit Sharma and Apoorva Jois, ShopX enables retailers to offer their products and services to customers by listing them, along with daily deals, on its platform.
Contrary to an asset-heavy approach, the startup focuses on a ‘digital offline’ approach using a proprietary technology platform. ShopX also offers digital services including mobile and DTH recharge, bus or flight bookings, and utility bill payments.
The platform also provides credit options to retail partners through ShopX Suvidha. The company has partnered with over 100 consumer brands, including Hindustan Unilever and P&G.
At the time of the August 2018 funding round, Sharma had said that ShopX was growing 20% month-on-month over the last few months. He expected the growth rate to rise to 25% over the following months.
The company has also turned profitable at the category-level. Today, Nandan Nilekani-backed startup enables 45K retailers across 28 towns to reach its 8 Mn customers. These customers and retailers enable 50K transactions per day.
The Need For Assistance In Ecommerce
With internet penetration at an all-time high since the entry of Reliance Jio, the ecommerce usage for daily needs has also increased around India.. And with the increasing push for online retail, even Kirana stores in multiple formats are adopting new-age technology services and products.
In 2015, during a presentation, Boston Consulting Group’s Senior Partner and Director Abheek Singhi had said that the kirana store model works well in a complex market like India, where small-format stores can easily penetrate the length and breadth of the vast country. But considering the sheer vastness in presence and number, they still lack online visibility.
According to a 2018 IBEF report, the Indian retail market is expected to reach $1.1 Tn by 2020. Increasing incomes and lifestyle changes in the middle class community along with increasing internet penetration are the major factors which are driving this growth.
In the assisted ecommerce market, ShopX competes with the likes of ShopKirana and Peel-Works to bring the offline retailers online and leverage the potential of technology.