MatexNet gets VC funding from ICF Ventures

BANGALORE: Bangalore-based MatexNet Pvt. Ltd., engaged in business-to-business e-commerce services, has announced that it has received venture capital funding from ICF Ventures.

MatexNet, through its Internet site, has been helps companies liquidate their inventories and capital goods. The Web site, presently, has nearly two lakh items, valued at about Rs 300 crore, for sale. According to MatexNet managing director S. Jagan Vasan, the listings are growing at four per cent every month. On the buy side, the company has relationships with about 2,000 small and medium companies, he added.

"For large organisations, using the Internet to dispose of their extra inventories fetches about 40 per cent more price against selling the same as scrap," Mr Vasan pointed out, adding that the inventories are in excellent condition. But, they cannot be used due to design changes, upgradation of plant and machinery or simply due to excess stocks being ordered.

Mr Jagan, however, refused to reveal the amount of investments made by venture capitalist.MatexNet charges 2.5 per cent of the transaction amount from both the buyers and the seller. The seller can also avail of a membership to the site by paying an annual fee of Rs 14,500. Mr Jagan claimed that MatexNet had made profits in the first year of its operations. He, however, refused to divulge the revenue figures.