Saturday, April 13

B2B Startup ShopX Secures $35 Million to Boost Expansion

B2B firm ShopX has reportedly raised an amount of $35 million in a fresh funding round from Fung Strategic Holdings. The primary purpose of this funding is to fuel the company’s expansion plans.

The funds so raised are being planned to use in the strengthening of ShopX’s products and engineering teams. Along with this, the company also plans to strengthen its FMCG offerings and credit services.

“We believe that credit is a game-changer in this industry,” said Amit Sharma, co-founder of ShopX. “While we will not be providing credit directly, we will do so through NBFCs and invest heavily in this vertical,” he added.

Prior to this funding round, ShopX has secured funds of over $18 million from its early investor, Nandan Nilekani. Amit Sharma also stated that the company has also partnered with around 100 consumer brands, including Hindustan Unilever and P&G. Also, the company has been approached by 200 more brands for partnership on the supply side.

The other players that ShopX competes within the market include Lightspeed Ventures-backed Udaan and Kalaari Capital-backed Jumbotail, among others. According to the company’s statement, ShopX has seen 20% month-on-month growth over the last few months and expects this growth rate to rise to 25% in the coming months.

“ShopX has a huge opportunity to transform India’s current retail landscape and be a real pioneer in terms of creating the future of what’s possible for the retail ecosystem in India, from the consumer to the supplier, retailer or brand,” said Rajesh Ranavat, executive director of Fung Strategic Holdings.

Sharma also stated that ShopX has turned profitable at the category-level too. Among our core categories, consumer electronics turned profitable in February and food & grocery became profitable starting June. B2B e-commerce firms have been attracting investor’s attention over the years and are growing at a great pace.