B2B commerce enabler Beyobo has raised Rs 5.5 Crores in a Pre-Series A Round led by Inflection Point Ventures. SAN Angels, Indian Angel Network and Hyderabad Angels also participated in this round, along with several other individual angels. The funding round was initiated by CENSIE Capital Partners, who acted as the investment bank for the transaction.
The company plans to use 25% of the funds towards technology enhancement, 35% to supply enhancement, and the remaining 45% will be utilized for demand generation.
Beyobo addresses the challenges of product discovery and sourcing in the offline retail market by providing efficient solutions for discovering imported products. The B2B cross-border market is valued at a massive $730 billion. With a focus on beauty & personal care, consumer electronics, and fashion accessories, BEYOBO has gained significant traction, serving over 35,000+ retailers, and generating ~INR 95 crore in revenue in FY23. The company plans to expand into additional categories and incorporate predictive analysis and personalized cataloguing features to enhance the customer experience.
Beyobo’s founders include Anil Agrawal (Co-founder & CEO), a second-generation entrepreneur with over 18 years of cross-border business experience. Anil specializes in offline B2B markets, successfully launching the private label brand Whitecherry and achieving remarkable e-commerce success as the largest seller at Paytm Mall for cross-border products. Shikha Agarwal (Co-founder) brings extensive experience in traveling to interior regions of major Asian countries and working with international trade organizations. Kunal Jain (Co-founder) has over 18 years of experience in sales and distribution, having held managerial positions in organizations like Just Buy Live, Videocon, and ICON group.
Vikram Ramasubramanian, Partner, Inflection Point Ventures, says “The market for international Brands has seen a sharp rise due to deeper penetration of social media which has removed proverbial boundaries between large metros and tier 2 and 3 cities. The consumers are on a look out for premium and genuine international brands and Beyobo is helping such brands making inroads and opening new markets for them. We believe B2B online commerce is just beginning to unfold in India and it will see many new and disruptive models with Beyobo taking the lead.”
BEYOBO operates at a significant scale with an impressive traction of Rs 11 Cr MRR and maintains a positive contribution margin. Additionally, they are catering to large enterprises and e-commerce players to help in sourcing international products for them.
BEYOBO, fuelled by 20 years of domain experience, driven by seasoned entrepreneurs. With a successful PMF achieved, the company has established deep integration with suppliers. In a fragmented import market worth $720 billion with a CAGR of 12%, BEYOBO’s business model is replicable in over 100 countries. Their product features patent-applied technology for small import automation, a supplier panel for convenient catalogue uploads, and a retailer mobile app. Operating on a 10% margin, which can be increased twofold, BEYOBO follows a zero-inventory model and generates revenue through subscriptions and services.
Anil Agarwal, Co-founder & CEO, Beyobo says, “As CEO of BEYOBO, I’ve seen B2C businesses dominate the last decade, but now we focus on digitalizing B2B operations. Cross-border transactions pose challenges, so we’ve developed three engines for non-linear growth. Our deep understanding of major Asian countries empowers us, and we’re ready to embrace the promising road ahead. The IPV team and their investors prove to be not just valuable in terms of providing funds, but also offer indispensable support in terms of ideating & brainstorming, providing real time feedback and sharing business connects. Moreover, Anil confidently asserts that BEYOBO has already laid out a blueprint for building a multibillion-dollar company.”
BEYOBO exhibits an impressive array of achievements, from securing two patents for cutting-edge smart technology solutions to assembling a formidable team with vast cross-border trade experience. Their compelling USPs, including no minimum order limit and customer-friendly return policies, have garnered significant attention. With a remarkable annual run-rate revenue of over $13 million and positive CM-2 margins, BEYOBO is firmly on the path to success. Moreover, the company is poised to seize a vast market opportunity, collaborating with millions of offline and digital sellers and numerous large enterprises for transactions worth over $150 billion.
