India: B2B e-commerce startups see funding surge to 7-year high but hurdles remain

Photo: Mint

Nearly two decades after IndiaMart, an online trade directory, started out, investment is finally flowing into B2B (business-to-business) internet start-ups, but a shortage of credit to manufacturers and suppliers continues to hold back the expansion of the sector, founders and investors said.

So far this year, B2B e-commerce start-ups have raised a total of $196.5 million, the highest since 2010, according to Tracxn. The biggest deals: $100 million raised by Just Buy Live; Power2sme’s $35 million series E and $12 million investment into Moglix. The data also shows most start-ups—247 out of 575 incorporated since 2010—came up in 2015.

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