India has seen perhaps some of the fastest growth when it comes to B2B eCommerce. Global online commerce giants like Walmart, Amazon and Alibaba have all been pumping resources into the nation, from providing digital platforms for buyers and suppliers to connect to launching eCommerce sites so local companies can procure the goods they need.
While foreign players have been targeting India for their B2B eCommerce tools, the nation has built up its own market with local players. One of these players, Omnikart, has just announced a major backing from investors.
The company revealed Friday (July 17) a $100,000 investment from Sumit Gandhi and Manish Gandhi, ABEC Ltd. promoters, according to reports. The B2B eCommerce site provides a digital portal for engineering and industrial players to meet their supply needs, and the new financing will allow Omnikart to expand its business and strengthen its distribution practices.
The seed funding will likely precede Series A funding in the next six months, Omnikart said, adding that it hopes to raise $2 million in financing.
“B2B and B2C industrial supplies market is still untouched in India, while supplier market is highly fragmented and also lacks transparency and competitiveness,” said Omnikart Cofounder Faisal Ansari in a statement. “Omnikart’s vision is to create an eCommerce ecosystem which will simplify the process of industrial purchase which, in turn, will contribute towards ‘Make In India’ campaign by optimizing industrial purchases.”
The “Make In India” campaign is a government-backed effort to strengthen the nation’s global position as a manufacturing hub and key supplier for global corporate buyers.
While the market has depended on foreign eCommerce giants like Alibaba and Walmart to boost the Make In India brand, Omnikart’s major financial backing suggests that VCs are looking to boost the nation’s domestic market when it comes to B2B eCommerce.