Ahmedabad-based E-commerce company SaleBhai which specialises on regional goods, has been funded by Times Group’s investment arm Brand Capital. The amount is Rs 10 cr which will see them aquring a minority stake in SaleBhai. Cash involvement is absent in the deal. Brand Capital previously invested an unclosed amount in peer to peer lending platform Faircent, which caters to retail and business loans. SaleBhai is their second company to invest in.
Salebhai was estabilished by Vishwa Vijay Singh, Purba Kalta, and Pramod Rao. The company’s marketing and overall functioning is under Vishwa, Purba looks after contenet and communications while Pramod is the IT expert.
Talking about the funding Vishwa says that it will help the company reach new hights and expand their hands to more customers in the country and abroad.
Estabilished in September 2015, the online portal helps 17 diasporic communities to meet their needs by sourcing authentic products from their home town. The portal has Sweets, namkeen, chocolates, spices, dry fruits, beverages, pickles, handicrafts, paintings, puja items, and herbal products from over 100 cities and 250 sellers. 12 high net-worth customers helped the startup to raise an investment earler this year. The estimated amount is between Rs 5 lakh-1 crore. This round had HNI investors like Hungama Vice President Virendra Shekhawat: Deepak Chokhani, Director- Equity Capital Markets at CIMB; and the promoter of Instani, Yogesh Patel. Funding Scenario. With the crunch in funding, Indian startups have undergone massive changes in their business models and other relevant stratergies. Compared to the past, investments have boomed in Tier II and other cities compared to the past, but due to the fact that access to day to day facilities and meeting investors not being a frequent oppertunity for these city-based entrepreneurs, startups are still struggling. However, these startups has an upper hand because the cash burn is low and this helps them to cross the bridge in the early stages. While securing Rs. 10 crore will be a huge help to SaleBhai, other metro based e-commerce firms are facing barriers in scaling their models and even major investments do not gurantee their existance in the distant future.