A marketplace for SMEs

By Meghla Kathju

NEW DELHI: Itconnexion.com, a global B2B IT e-marketplace, is a new site from where customers can search for vendors for procuring products and services and in turn vendors can have access to a pool of IT customers. Launched by US-based, NRI promoted Cybridge Corp, this site is targeted at small to medium size IT firms that do not have a well established Web-based outsourcing and marketing model. According to Subrat Patnaik, President, Cybridge, Itconnexion.com will help these companies to save on costs while outsourcing their IT needs.

"Whether it be for simple data entry work, a networking project, products, tools, a dot.com solution or manpower requirements, customers will be able to find everything from our site," he added. A yearly registration fee of approximately $2000 will be charged to vendors besides a 0.5 per cent commission on each deal that is finalized through the site. Till June 2001, however, registration is free of charge. Customers will not be charged anything.

Approximately $ 4-5 million will be invested in the first phase. Of this, Patnaik has put in $1.2 million and has received angel funding for $3 million. Venture funding of another $2 to 3 million is expected. Another $15 million is expected in the second phase–around December. An IPO in mid 2001 is expected to raise $100 million.

While first year revenue has been pegged at $ 1.1 million, projections for the second year is $ 57 million. "In the second year, we will start charging for registrations and volume transactions will begin on the site," said he. In 2002, the revenues should go up to $ 231 million and by 2004, Patnaik expects a turnover of $736 million.

According to Patnaik, India is a good place for vendors. "There are so many SMEs here who face problems in marketing their products and services. This website will be an ideal and cost effective medium for them to get new projects and customers." He expects to register about 5,000 members from India alone by the end of this year.