JustBuy Live, online distributor platform that connects shopkeepers with brands and retailers, has raised $20 million in Series A from Alpha Capital.The company plans to invest the funds in scaling their operations and customer acquisition.
Founded by Bharat Balachandran and Sahil Sani, the company aims to bridge the gap between shopkeepers, brands and distributors by creating a common platform. This Mumbai-based company launched its online portal in Jan 2016, that will just work under B2B section. Using this app shopkeepers can directly avail the product from brands, get offers and build a higher margin.
Sahil quoted, “Our model takes brands to retailers directly by removing the layers of distribution. We are a pure B2B online player. We are neither a marketplace nor a connections platform, but a very focused distributor.” Interestingly, Sahil who is also the chairman of Sahil International has funded the company with $5 million, in his own capacity.
The company has tied up with major brands like ITC, Pepsi, Dabur, Intex, Sony etc. It is also creating a distribution ecosystem concentrated on sectors like food, personal care, electronics, mobiles etc. The only problem faced by the company is convincing retailers to register on this platform, according to Sahil, retailers don’t use laptops as they don’t have all that time to invest.
JustBuy claims to have 25,000 registered retailers (adding at a rate of 1,000 per day) and is currently operating in 15 cities across 10 states. Also, the company claims that the firm’s aggregate margins are in excess of 10%. They are currently monetizing through their distributors.