Tolexo plans expansion drive, eyes 2,000 cities
Tolexo.com, an ecommerce platform for business goods and supplies, is embarking on an outreach plan which would see the company expand its footprint to over 2,000 cities in the country in the next two years.
Hyderabad: Tolexo.com, an ecommerce platform for business goods and supplies, is embarking on an outreach plan which would see the company expand its footprint to over 2,000 cities in the country in the next two years.
“We have already delivered to almost 80 per cent of India (over 900 cities), while the next phase is to launch local sourcing and warehousing in south and west India to boost our outreach plan,” Brijesh Agrawal, Founder and Chief Executive Officer of Tolexo, told The Hans India.
Floated by IndiaMART.com, the country’s largest business-to-business (B2B) marketplace that matches buyers and suppliers, as a separate entity in 2014, Tolexo currently has around three lakh small and business enterprises (SMEs) onboard, with plans to serve over one million businesses in the next two years.
As a big leap in pursuit of this goal, Agrawal said, Tolexo had recently signed an MoU with the Madhya Pradesh government to help SMEs leverage the power of buying and selling online. “We are further exploring more such local and national arrangements in the near future,” he said.
An early mover in the space, offering over one million products spanning more than 8,000 brands, Tolexo says its fast traction points to a large market in the industrial buying segment.
“The industrial and business goods opportunity in India is pegged at over $1 trillion. Of this, the B2B wholesale component as a category is worth $300 billion, which is projected to touch $700 billion by 2020. Since most of this is currently offline, the challenge is to get businesses to buy online,” Agrawal said.
At present, Tolexo has a five per cent order-to-cancellation ratio. It aims to bring this down to two per cent, which according to Agrawal would be among the best metrics across B2B and B2C platforms in the country.
Stating that Tolexo is completely funded by its parent IndiaMART, and its line of investment would be majorly used to ramp up technology, build products and maximise outreach, he said the company was open for exploring inorganic growth opportunities. “However, there isn’t anything concrete as yet,” he added.