Former Yebhi employees Mayank Kumar and Sonika Gahlot who founded an e-commerce firm KnottyKart, have raised angel investment from a Delhi-based financial institution. The total funding will amount to Rs 3 crores said MD and CEO, Mayank Kumar told NextBigWhat.
The funding will be split into 3 tranches of Rs 1 crore each. The company has already received the first tranche of funding, and expects to receive the rest in the next 4-6 months.
KnottyKart plans to use the funding to speed up inventory levels on electronics and mobiles which they feel is a highly volatile category. A large portion will also be used in online marketing and on a location based e-commerce model.
The company was started by former Yebhi employees in November 2013. KnottyKart expects to clock in a revenue of Rs 83 crore by the end of March, and so far have over 150K customers using their site.
Knottykart says that they are betting big on the location based e-commerce model to cut down on costs.
“We will be having partners across the country and if someone places an order online on our website, we’ll have it delivered. We’ll evolve the system such that, if any customer orders from us, we’ll try and deliver the same day,” explains Mayank.
The company is currently testing the location based e-commerce model in Delhi and the NCR region.
“The testing phase should take about 30-45 days, then we’ll go ahead opening centres aggressively across the country. The feedback has been extremely encouraging so far from both the offline partners and customers,” says Mayank.
As raising series A seems to be getting tougher for e-commerce players, KnottyKart would have to focus on profitability right from the start.