Indiaplaza looking to raise $10 m by FY'13

E-commerce venture Indiaplaza.com is looking to raise close to $10 million (Rs 53 crore) as part of its second round of funding by the end of this financial year or fiscal 2013.The company had already raised $3 million during 2004 to 2011 from investor The Indigo Monsoon Group. It also raised $5 million from NEA-IndoUS Ventures last year.

“We plan to raise this capital mainly from brand promotions and for better marketing of our company,” Indiaplaza Founder and Chief Executive Officer K Vaitheeswaran told Deccan Herald.

It is understood that the investment would likely come from its existing investors, however, Vaitheeswaran did not confirm that they are in talks with any specific company for the fund-raising.

“Though the exact funding amount has not yet been ascertained, we are looking at $8-$10 million by the end of this fiscal,” he added.

Started in 1999, Indiaplaza was the first e-commerce website in India and was then called Fabmall, the company had sales of Rs 50 crore in 2011-12 and targets Rs 200 crore in fiscal 2013.

Most Indian e-commerce companies have not been making much money and industry experts say that the sector would take some more years to become profitable as it’s in its nascent stage of growth.

When asked about any IPO plans ahead, Vaitheeswaran said that the company has not considered the possibility of going public at this point of time.