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Friday, June 09,2000
Business-to-business (B2B) portal auctionindia.com, focusing on auctions and sale of industrial plants and machinery, has crossed the Rs.1 crore mark in deal-making in its first three months of operations. The dotcom recently concluded for BHEL, what it claims to be the single largest Net deal in the country, a transaction of 27 lakh.
auctionindia.com Pvt. Ltd., is a subsidiary of US based Cybernet Software Systems Ltd and is partly owned by C E Karunakaran, who formerly headed the Industrial and Technical Consultancy Organisation of Tamil Nadu (ITCOT) and, currently, is the managing director of auctionindia.com.
According to Karunakaran, the company was looking at venture finance of $3 million for funding its immediate expansion plans. The funds would be utilised for sourcing technology for purchase management, building infrastructure and media campaign.
Talking about the company's revenue model, he said that auctionindia.com charges commissions from both the buyers and the seller on consummation of a deal. "We charge in the range of 3 per cent to 5 per cent from both the parties", Karunakaran said.
"The revenue model of the company revolves around establishing a strong franchisee network at all the major industrial centres and building an industrial community", he said. auctionindia.com was looking at fixing 40 strong franchisees by the year end.
The company also generates revenue by allowing other portals to avail of its auction-conducting mechanism. Two vertical portals, autopartsasia.com (Subodh Bhargava being the chairman) and SciQuest.com, have already signed up auctionindia.com for facilitating auctions on the latter's server. "We will derive income as a flat fee or a percentage of the value of transaction", Karunakaran said.
auctionindia.com, he claimed, was one of the few companies, which actively made market for its clients. "We just don't give a mere listing of machinery. We are with the clients through the entire deal and help both the parties in getting better realisations", Karunakaran said.
Though Karunakaran would not divulge the internal forecasts for the current year, auctionindia.com is likely to clock deals worth at least Rs.4 crore in the first year of operations. |
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