Smart Investors End Middlemen Culture in India
Entrepreneur's New Year’s Guide
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When it comes to eliminating middlemen in India, technology has potentially taken the lead when it comes to ensuring that goods/services reach the buyers directly. Today’s entrepreneurs are also constantly researching on developing smart models which facilitate exactly this. Apart from entrepreneurs, there are venture capitalists (VC) who are actually looking at mentoring such ventures so that a major pain-point could be mitigated through smart solutions.
Latest venture capital investments towards eliminating middlemen
As far as overseeing investments towards causes are concerned, the latest to join the list is Rajasthan Venture Capital Fund (RVCF) which has led a venture round for B2B fashion startup Wholesalebox. Though the amount of VC funds pumped-in is yet to be disclosed; there were two other investors (existing) who participated.
Till date, Wholesalebox has raised nearly USD 2 Million in venture capital. Their portfolios of investors include Orios Venture, Manish Maheshwari, and Contrarian Drishti Partners.
Wholesalebox is into offering fashion products through an online platform to retailers directly at factory prices, without the latter having to go through traders and middlemen.
Headquartered in Jaipur, Wholesalebox could use the latest VC funds to further operations in other Indian geographies which may potentially lead to more retailers accessing technology to obtain goods without having to go through intermediaries.
Analyzing the smart investment trend
Of late, there have been cross-border investments as well, to further smart solutions for India. In this regard, Ganesh ventures founded by Jessica Wong pumped-in USD 10 Million at financial solutions startup IndiaLends. This was a Series B investment to further facilitation online borrowing and lending in India with respect to personal loans and credit analysis
“After years of exploring and analyzing India market, we can say with confidence that our investment and post-investment management strategy has worked very well,” stated Jessica Wong – Founder and Managing Partner at Ganesh Ventures.
Also, healthcare startup SigTuple raised USD 19 Million from the likes of Accel and IDG. This investment takes SigTuple’s overall equity fundraise to USD 25 Million. The startup has been associated with investors such as Pi Ventures, Axilor, Binny Bansal, Endiya Partners, Venture Highway, and Trifecta Capital.
At this juncture, it is worth noting that raising Series B venture capital, from the perspective of startups, requires more than smart entrepreneurial models. Actual use-cases and potential business models scalability also play a major role in getting investors to invest in startups.