Indiamart to launch its own online shopping platform

indiamart.com is expected to launch tolexo.com, its online shopping platform by July first or second week. Indiamart is one of the largest online directories for small and medium businesses. The new online platform will be registered as a separate entity, Tolexo Online Pvt. Ltd.

Founded in 1996, Indiamart is backed by Intel Capital and has Bennett, Coleman & Company Ltd as one of its investors. It is only a platform for listing businesses and connects registered vendors with global buyers. Actual transactions happen offline which helps about 1.5 million registered sellers selling a wide range of products like clothes, cosmetics, industrial machines, chemicals, pharmaceuticals, chemicals etc.

However, Tolexo will operate as a direct sales platform for consumers and businesses alike. All product categories will not be stocked. “We are not going to compete with the Flipkart and Snapdeal of the world. The categories that we are going to come up with will be extremely different,” said Brijesh Agrawal co-founder and director of indiamart.com.

Although Agrawal himself did not reveal any product listing and related details, a source indicated that the launch will include home, office and industry supplies like exclusive handicrafts, medical equipment, auto parts etc.

“Everybody is busy serving what is probably the ‘hottest’ category at the moment and the kind of fight these companies are giving each other is making the whole business proposition unviable,” said Agrawal, pointing to electronics and apparels.

With respect to seller tie-ups, Indiamart will not have to spend much right away on this online move as it already has significant seller base. However, it could face some challenges in consumer acquisition as more efforts are required on this front due to the difference in the buying behaviour of businesses and consumers.

Opportunity for an Indian Online Seller on tolexo.com

The marketplace model is a proven success in the online selling scenario due to lesser capital requirement and easier access to direct FDI which is otherwise not possible for direct online retail. Indiamart already has a wide user base with almost two million leads each month and average conversion rate of 7-8%.

Its already established and the team does not want to move “with the flock” right now so product categories will be introduced according to consumer demand in the initial 2-3 years. Instead of bombarding consumers with products and discounts, the focus will be on giving them what they need. It is a good opportunity for sellers dealing in daily needs of consumers to reach out without geographical boundaries and additional marketing expenses