UAE based startup, Phygicart is all set to enter the Indian market with an investment of ₹100 crores ($14.5 million). This early investment is made by Boby Chemmanur, Chairman and Managing Director of Boby Chemmanur International Group.
The new funds will be used to create the company’s own products, setting up assembly units in Ahmedabad and to tie up with brands to build its brand image.
Phygicart, an online e-commerce platform that works on both the marketplace and inventory model, was founded by Anish K Joy and Joy Antony in 2016 with its headquarter in Dubai. Phygicart has over 5000 products across different categories like Mobiles, Electronics, Grocery, Beauty, Health, Fragrance, etc.
Anish K Joy, said, “We are also in various stages of discussions to take over certain other brands. The model enables an individual to become a consumer and also a partner simultaneously, while also sharing profits with our partners. The initiative is also to provide an opportunity to small and medium enterprises who come up with innovative products.”
Phygicart is looking to expand its presence in seven countries by the year 2022, including countries like the US and Nepal. It is also trying to reach a turnover of ₹6,800 crores ($1 billion).
“The major drawback of e-commerce business is that it cannot establish a direct personal rapport with customers. We have rectified this adding that Phygicart.com will distribute about 60% of its total profits to partner store owners who join by logging in to phygicart.com,” Boby Chemmanur said.
Indian e-commerce market is on a growth trajectory but it is also getting crowded. Flipkart and Amazon are already involved in a head-on battle to capture the Indian e-commerce market. Phygicart will have to find its own place in the Indian e-commerce market already dominated by the two giants.
According to a research by IBEF, India is expected to surpass the US, to become the second largest e-commerce market in the world. This is certainly good news for Phygicart as it begins to expand in India.