Equity Investment needed for Construction Industry in India

Opportunity Snapshot

Investment Opportunity

B2B Marketplace for Construction Industry, a paradigm change “how the Construction Industry buys”. GOAL: “A BILLION DOLLAR E-BUSINESS IN NEXT 5YRS" in India & Intl.

Indian Construction market size is approx. USD 150 Bn and will emerge as 3rd largest in the world by 2020. (PWC Report). The Building Materials market size is approx. USD 100 Bn.

Construction Industry is always slow to adopt the new technologies and its complex business structure, unlimited product ranges, organised and unorganised manufactures/suppliers,various credit payment instruments and challenging supply chain are a deterrence

It is also an opportunity to break thru by developing an eCommerce Platform for solving multiple issues and provide an ease of procurement, secured payment and coordinated SCM.

MARKET NEED: CUSTOMER NEEDS UNMET - PROBLEM/ PAIN:

Need 1: No single platform to buy online all building materials in Construction Industry
Need 2: No immediate quotes for comparison/ ordering; 2-12 weeks procurement cycle
Need 3: met inefficiently: No reliability in delivery
Need 4: met not completely : Revolving Credit/ LC payments terms not available

SOLUTION:

ECommerce platform to buy Building Materials online with wide range of Brands, Price range, Product listings from Organised and unorganised sector at competitive price.

Integration of offline business model of procurement cycle- Bidding, Negotiation, Auction.

Integration of offline payment terms such as LC/ Revolving Credits

Integration of Project Progress and Procurement tracking for phased delivery & reliability

Pan India presence and multiple sourcing from across the country to reduce logistics cost

UNIQUE SELLING PROPOSITION:

Only Integrated eProcurement platform for B2C B2B and Marketplace in Construction Industry across all Sectors- Buildings, Infrastructure, Industrial & Energy etc.

Value added Engineering services sets us apart

“Seamless integration of Procurement-Payment-SCM with Project timeline”

Networking platform for professionals from Construction Industry.

WHY WILL WE WIN:
Only Marketplace exclusively for Construction Industry
One stop Solution- to buy online A2Z Building Materials/Products

GROWTH MARKET
Scalable Platform to Multiple Sectors
Scalable platform to International Market

Competitive Advantage

There are few say about 10 ecommerce platforms for procurement of building materials in India, though they claim as market place, none are B2B/B2C market place and none have pan India strong presence. They are just acting as another supplier for builders or retailers nothing more.
There are couple of platforms which deal anything and everything not focussed to an industry.
An Alibaba, Made-in-China portals are universal from pin to anything and not specific to sectors, hence their value added services and customisation to entire transaction process is zero.

We intend to develop by solving the specific problems in Construction Industry, by integrating Manufacturers, dealers/distributors, retailers, institutions across India and integrating with banking system and optimisation of supply chain. The value added services and solutions, scheduled deliveries linked to the project etc will make appeal to Customers.

Real time stock, multiple options to buy and sell across India under one platform at most competitive prices with certain financial guarantee will increase their chances of business growth.

Rationale for the deal

This will be the only B2B Marketplace in Construction Industry for registered sellers/buyers and all features viz, prices/ discounts, payment terms, stock availability, scheduled delivery, phased deliveries, etc will be exclusive and remain confidential between the parties.

Every transaction on the platform will have a certain percentage fees as revenue.

In most of the existing platforms the B2B payment transaction is done outside the platform as offline and doesn't provide end to end solutions.

Use of financing

The immediate use of funds will be:

To set up an office & Infrastructure in Bangalore.
Recruit the Core team: key Management, Financial & Technical Heads (CXO level), Regional, Product, Operational, Marketing, Sales, Supply Chain etc Heads to build professional teams under the.
Appoint top business mgt consultants/ advisors/ software development company.
To develop the Software Platform.
To get trade licence, register trade marks, legal compliances etc..
To subscribe to Market Research reports and Business Development.
To register the suppliers & buyers, to list the product categories pan India
To interact with industry to get feedback on the platform and customise while test launching.

Opportunity for the investor

Looking for silent investor with min investment period of 3 to 5 yrs.
Investment Schedule:
1. Now: USD 2 mn immediately and 3 mn in next 3-6 months.
2. By year end/ early 2019: USD 5 mn

Investor opportunity:

To reach out to pan India and international market the additional rounds of funding is required thru Venture Capitalists, as we develop platform with traction of B2B business with many registered suppliers/buyers.

To give an example, recently started startup in 2016, Udaan, a B2B marketplace for general category in retail business has been listed as Unicorn i.e., USD 1 Bn valuation and has been funded with USD 275 mn so far in multiple rounds within 2 years.
Comparing this, Buildexo in Construction Industry has much bigger potential in Global market.

Exit thru the sale of Equity to next level of Investors.

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