Indiaplaza.in has raised $5 million USD in venture capital funding from NEA-IndoUS. Indiaplaza.in, controlled by The Indigo Monsoon Group, is one of the e-commerce companies in India. The money was raised by issuing fresh equity.
IndiaPlaza is amongst the first companies to enter the e-commerce space in India. However, they lost the first mover advantage to companies such as Flipkart and Infibeam that focus on simple user interface and excellent customer service. Also Amazon has been gearing up to enter the Indian online commerce market which will only add to the competition. Since the industry works on very small margins and cost of acquiring the customers is relatively high, customer service and retention strategy becomes very important. IndiaPlaza will hopefully utilize the funds to catch up with its competitors and improve its customer service. It already has about 1.5 million customers and houses over 8 million products in its catalogue.
The e-commerce space in India has been growing rapidly in the past few years and has already crossed the tipping point. Some analyst estimate the size of Indian e-commerce industry to be about 2000 crore rupees excluding online travel sales.