Assisted e-commerce platform ShopX, which partners with retailers and local kirana store owners in smaller towns, has raised $35 million from Fung Strategic Holdings.
The Bengaluru-based B2B firm will infuse the capital to strengthen its products, team and to expand into other markets. Besides a part of the fresh capital raised also be used to ramp up its FMCG offerings and credit services.
For credit service, the e-commerce enabler will loop in NBFCs. It’s planning to invest a huge sum in enabling credit access to merchants. As of now, it facilitates credit options to potential retailers through ShopX SUVIDHA.
Founded by Amit Sharma and Apoorva Jois, ShopX essentially offers a wide range of products in categories such as FMCG, mobile phones, and accessories.
It also offers digital services including mobile and DTH recharge, bus/flight booking, and utility bill payments.
ShopX claims to enable retailers to earn 30 to 40 per cent more than the traditional retail model. It has over 50,000 retailers in 300 towns across ten states and does over Rs 500 crore in annualised transaction volume, reveals its press statement.
Since its inception in May 2015, it has partnered with over 100 consumer brands, including Hindustan Unilever and P&G.
According to Sharma, the company has witnessed 20 per cent month-on-month growth over the last few months and expects this growth rate to rise to 25 per cent in the coming months.
ShopX had previously raised $2 million from its early investor, Nandan Nilekani. It has so far raised a total of Rs 122 crore in previous rounds(excluding the current round).
ShopX which competes with Udaan, Jumbotail, StoreKing, and Snapbizz, among others will keep an eye on Reliance foray into the segment. The Mukesh Ambani-led group is planning to bring a hybrid online-offline market with the help of Reliance Retail and Jio.
To bring small retail players in the online format, Reliance will integrate pharmacies and small grocery stores through its digital platforms.