Xstok.com, an online business-to-business (b2b) market place for selling surplus textile stocks, has completed 300 auctions in the last seven months.
The platform enables both buyers and sellers to transact without intervention of intermediaries, thus saving on cost.
Leading textile companies such as Arvind Mills, Grasim Industries, Donear Industries, Mafatlal Industries, Bombay Dyeing, Trident Industries, Welspun Group, Gokuldas Export and Indo Count have sold their inventory on the platform. It also has over 4,000 registered buyers and about 130 sellers.
Founded by Sanjiv Khandelwal and Mihir Shah, the company is equipped to handle sale of surplus commodity generated by multiple industries but at present it is focusing on textile. Early-stage investment firm Oliphans Capital and a group of undisclosed angel investors recently invested ₹3 crore in Xstok.
The company charges suppliers a listing fee and transaction fee for every successful deal.
The Indian textile industry generates surplus goods worth about $6 billion per annum. Since the market for surplus garment is fragmented there was no transparent mechanism to arrive at right price.
“Xstok aims to ensure transparent pricing, secure transactions and a large market for the seller. For buyers it provides access to much larger real-time inventory of surplus, irrespective of their location,” said Shah, who has worked with Bank of America-Merill Lynch as an investment banker.
Khandelwal has over 20 years of experience in developing and running business-to-business marketplaces and e-auction platforms.