ShopX Co-founder and CEO Amit Sharma

ShopX, a B2B e-commerce startup based in India, has raised US$35 million in a new round of funding from Hong Kong-based Fung Strategic Holdings (FSH).

Run by Bangalore-based 10i Commerce Services, ShopX will use the money to add new small merchant clients, strengthen its product and technology, and build new offerings covering multiple product verticals.

The startup has previously raised US$10 million in funding from some well-known names like Infosys Co-founder and former UIDAI chairman Nandan Nilekani.

Founded in 2015 by Amit Sharma and Apoorva Jois, ShopX connects brands and suppliers with small merchants and consumers through a digitally managed retail platform. It enables small merchants (and their customers) to purchase various products and services from manufacturers/brands.

On the demand side, it works closely with retailers and traders to digitally enable them. On the supply side, the company partners strategically with leading brands and manufacturers to digitise their value chains and distribution systems.

Currently, ShopX claims it covers 50,000 retailers across 300 towns and doing over INR 500 cr (US$72.7 million) in annualised transaction volume.

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Rajesh Ranavat, Executive Director of Fung Strategic Holdings, said: “ShopX has a huge opportunity to transform India’s current retail landscape and be a real pioneer in terms of creating the future of what’s possible for the retail ecosystem in India from the consumer to the supplier, retailer or brand.”

There are 12 million small merchants in India, who constitute about 90 per cent of the Indian consumption economy of US$700 billion. In comparison, e-commerce currently represents about 2 per cent of the consumption space while large format retail (or big box stores) and modern trade (such as supermarkets and hypermarkets) represents about 7.5 per cent, leaving over 90 per cent of retail in India to small merchants across the country.

FSH is held by Fung Investments, the private investment arm of the families of Dr. Victor Fung and Dr. William Fung, the controlling shareholders of the Fung Group. Other companies in FSH include IDS Medical Systems, Fung Fashion and Heritage Foods,

The Fung Group operates across the entire global supply chain for consumer goods from design and development, to sourcing, logistics, distribution and retail. It comprises 40,000 people working in more than 40 economies worldwide.