Matexnet expands portfolio with new ventures

NEW DELHI, INDIA: Matexnet, India's first online B2B material exchange company, is aiming at expanding its portfolio with used-vehicles and surplus retail ventures in the coming year.

For this, the company has earmarked a total investment of Rs 15 crore for integrating technology, building alliances and new business models.

S Jagannivasan, founder and managing director of Matexnet said that the company is all set for a major expansion across the country with the launch of the two business verticals for used vehicles and another for surplus retail goods.

"We will be investing about Rs 15 crore on the expansion plans, which includes technology integration, building alliances and developing of the new business models. We aim to increase our current presence of 28 cities to 52 cities in next 18-months," he said.

Used vehicles division

The Matexnet Used Vehicles Division will deal with four wheelers, three and two wheelers as well as commercial vehicles. Apart from industrial assets, all the 28 locations where Matexnet is present now will be engaged in carrying out the sale of the used vehicles. The new business will cover more than 150 towns across the country.

"The Used Vehicles Division will fulfill the specific needs of specific industries, when they want to dispose off their existing fleet in bulk order to upgrade to other models. As of now the total addressable market is estimated at around Rs 200 crore with addition of Rs 50 crore annually," Jagannivasan said.

According to Jagannivasan, the division is also expected to cover at least 400 towns in the next year, especially in Tier-2 and Tier-3 towns in the country. "We are also working on creating an eco-system around the business model, by roping in refurbishing companies, and re-financiers," he said further.

Surplus Retail Division

The Surplus Retail Division will act as a platform for online auctioning for manufacturers, distributors, dealers, retailers and importers to buy or sell in bulk across product categories to a wider market reaching more buyers.

Matexnet will offer the products at a minimum reserved price for a fixed quantity which the buyer can place their bid. Items available in the Buy Now category will be available for sale on a first-cum-first-serve basis, at the price shown against the product. In the case of multiple quantities of various models of a single product are available, Bid and Win module will be implemented, which will help the buyer bid for required models at required quantities.

"We will be enabling the disposal of surplus, brand new, and obsolete retail inventory, along with warranty and guarantee options to a wider audience in the tier-2 and tier-3 towns, where there is a requirement. The portal will also act as platform for corporate firms to make bulk purchases of products at reasonably attractive prices," Vasan added.

Matexnet also plans to go global. The company will be establishing itself in the SAARC region countries such as Nepal, Bangladesh, and Sri Lanka before entering into other Asian markets starting with Singapore. Matexnet is also exploring the possibility of tying-up with Indian banks to monetize on the high-value Non-Performing Assets.