Exclusive: Indian ecommerce enabler eyes $50m series C fundraise

India-based Vinculum Group, a SaaS ecommerce enabler, aims to secure up to US$50 million in its series C round, founder and CEO Venkataramana Rao Nott told *Tech in Asia*.

The fundraise will be done in two tranches of US$25 million each, and Nott says that Vinculum has already received offers from investors. However, he didn’t disclose the names of the investors.

(From left) Deepak Singla, co-founder and VP omnichannel at Vinculum; Annajee Nott, co-founder and director at Vinculum; and Venkataramana Nott, founder and CEO of Vinculum / Image credit: Vinculum Group

The company is backed by Accel, Ivy Capital Ventures, and Singapore-based RB Investments. Vinculum is expected to raise the funding in the next four to six months, with the first tranche of US$25 million expected to close by June.

Founded in 2007 by Nott, the company provides a SaaS full-stack solution that allows direct-to-consumer brands, ecommerce roll-up firms, quick commerce firms, and traditional brands to manage their online stores and sales. Besides India, Vinculum has a presence in Singapore, Malaysia, Dubai, and the US.

Apart from handling product syndication to marketplaces and online stores, Vinculum helps brands automate orders, inventory, shipping labels, returns, and reconcile disputed transactions. It also automates warehouse activities involving pickup, packing, and shipping.

The company provides its plug-and-play software on a subscription basis to startups such as Swiggy, Zomato, Zepto, Nykaa, MyGlamm, Lazada, and TaniHub, among others. The subscription model involves a minimum monthly fee for fulfilling a fixed number of orders per month. If the orders exceed the limit, then clients have to pay for the extra orders.

Vinculum will use US$25 million for operational purposes, while the rest will be earmarked for M&A activity. “Over the next 15 months, we will see three major acquisitions happening,” says Nott.

In the coming six months, the company will make an acquisition in Southeast Asia and another in the US. Vinculum also plans to buy an analytics firm, which Nott thinks is the missing piece that can help it show clients how to digitally scale their brands. If clients can increase their level of orders, then Vinculum’s revenues will go up, too.

The company has also set its sights on the long term, as it plans to purchase another firm in Europe in 2023.

Vinculum is looking to grow its client base in Southeast Asia to about 250 this year. To that end, the company is looking to snap up a local firm that will help strengthen its customer service team. “This is more in terms of stabilizing us in the region,” adds Nott.

It is also targeting to buy SaaS companies that have revenues of about US$3 million to US$5 million.

See also: Exclusive: Ecommerce enabler Zaapi bags $4m seed round led by Flourish Ventures, GFC, Partech

Southeast Asia currently accounts for 30% of Vinculum’s revenue, with 65 mid-size and major brands as its clients. India accounts for 65% of revenue while 5% comes from the Middle East.