E-commerce technology platform ShopX has secured a funding of INR 10.68 crore from clutch of independent investors. Three investors along with Fung Capital’s MD, his wife and former chairman of Crompton Greaves spearheaded the funding round.
Following the fresh fund infusion, the Bengaluru headquartered startup has issued total 8,778 equity shares at a price of Rs 12,161 per shares. Notably, ShopX’s price per share has reduced drastically, according to reports.
Reports claim that the price per share of ShopX was hovering near Rs 22,127 during the last funding round. This is a significant drop of 45% in its price per share. The Bengaluru based venture had last raised funds in 2018, scooping up $35 Mn from investors.
As for the share distribution pattern, existing investor Rajesh Ranavat (MD of Fung Capital) was allotted 5,852 equity shares for his INR 7.11 crore investment. On other hand, former Chairman of Crompton Greaves Kewal Nohria bagged 2,926 equity shares for his contribution of Rs 3.56 crore.
The company is essentially a B2B ecommerce platform that helps small retailers spread across small towns in streamlining their sales and inventory management. Although a relatively smaller player compared to more illustrious competitors like Udaan, it claims to have annual gross merchandise value of $900 million.
Furthermore, the company claims that it has become profitable on the unit economics level. But now the real question is will the company manage to hold down to these impressive numbers in the aftermath of nationwide lockdown.
By the way, the Bengaluru based also counts Infosys co-founder Nandan Nilekani among its investors. The famous IT veteran has invested $18 Mn in the startup, according to reports.