JSW One Platforms, the B2B e-commerce venture of the JSW Group, has raised Rs 205 crore from Japan’s Mitsui & Co. The series A funding round valued JSW One at more than Rs 2,750 crore.
Gaurav Sachdeva, chief executive officer (CEO) of JSW One Platforms, said the company would use the money for expansion as it seeks $1 billion GMV (gross merchandise value) at the end of FY24, marking a four-fold growth.
The group has committed to invest Rs 4,000 crore in JSW One till FY27. Mitsui’s funding is additional capital, Sachdeva said.
“Our investment and partnership with JSW One Platforms not only signals our belief in the firm’s robust business model, but also our conviction in the long-term growth prospects of the B2B e-commerce space, which was catalysed by the COVID-19 pandemic,” said Masaharu Okubo, Mitsui’s managing officer, country chairperson in India.
Parth Jindal, director of JSW One Platforms, said Mitsui’s investment validates "our long-term strategic vision to capitalize on technology to take a strong leadership position in the B2B e-commerce sector."
“India has over 500,000 building and manufacturing MSMEs and as this number grows JSW One aims to cater to all their building materials requirements through our advanced and technology enabled products and services,” he said.
Also Read
Launched in July 2021, JSW One leverages the group’s brand, supply and distribution strengths in steel, cements and paints businesses. Supply from non-JSW brands is growing and stands at about seven per cent.
“We have been building a one-stop-shop for construction materials--it’s a $600 billion industry. Our brand, supply and distribution layered with technology can move all customers to an industry-wide platform where we can funnel all products whether we manufacture it or any other brand manufactures it,” Sachdeva told 'Business Standard'.
JSW One Platforms has two divisions: JSW One MSME Platform in the B2B space and JSW One Homes in B2C space. The company’s major part of GMV is from B2B, but both platforms are looking to expand the geographical footprint in the country.
The core need for capital is in JSW One Finance, which has applied for an NBFC licence, Sachdeva said. JSW One is hoping to break-even by FY27, which is when it may also look at an IPO.
Sachdeva said to ensure smooth deliveries, JSW One Transportation Services was set up as a division nine months back. It caters to about 40-50 per cent of deliveries for JSW One Platforms.
