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Press Release

By Preiti Sharma Shahane, Bangalore
 Published : 24th November, 2005

MatexNet in talks with UK fund to set up ARC

MatexNet, a garage start-up that began operations with an initial capital of Rs. 20 lakh in 1998, and is, today, a leading cross -  category B2B player, is in talks with a London based, $2 billion global fund operating in the stressed assets investment segment to form an asset reconstruction company in India. MatexNet offers solutions to the excess inventory problem that businesses face across industries, through its four business divisions - excess inventory liquidation (e-auction), e-tendering and e-procurement, e-barter and NPA (Stressed asset) relocation.

Managing Director S Jaganivasan, who co-founded the company with MatexNet Director S Yogeshwaran, says the company's platform, which has put through nearly Rs. 250 crore of annual sale transactions, is expected to facilitate transactions, worth Rs. 2,500 crore by 2007. The market for excessive inventory in the country (excluding NPAs of banks) is estimated at Rs. 60,000 - 70,000 crore.

"Catching the surplus inventory at the right time and identifying the correct buyer can translate into the correct value for sellers," says Mr Yogeshwaran. Therefore, right from elevators that a hotel wants to dispose of or unclaimed cargo, such as Mercedes Benz cars, treadmills and wastepaper to BEL's scrap valued at Rs. 1.73 crore, MatexNet offers online B2B e-auctions for all. Interestingly, MatexNet even helped a leading diamond studded jewellery brand barter a part of its surplus stock for ad space in a regional magazine. The publication, in turn, utilised the jewellery to market an attractive promotional scheme to its distributors. In the last six months, companies have bartered retail stocks worth Rs. 1 crore through MatexNet.

SBI has appointed MatexNet to, not only resolve its NPAs but also co-ordinate with debt recovery tribunals to liaison with them on legal issues. "To address, its growing business, MatexNet plans to add another 31 branches to its existing 12 units by December 2007," Mr Vijay Angadi, director, ICP Ventures and MatexNet's angel investor said.