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Dec 23, 2010, 04.46 PM IST
Angel investors Rajan Anandan, Rehan Yar Khan, Sunil Kalra - all part of Indian Angel Network - and one more unnamed individual have invested an undisclosed amount in Hyderabad-based MyZingo eCommerce Service Pvt Ltd, which runs BuyThePrice.com, an e-commerce site for consumer electronics and appliances.
BuyThePrice.com follows a unique model where it aggregates customers and use their aggregate demand to bring down the price for a particular product. So it offers real-time deals where the deal is co-related to the number of buyers. It collates demand and maps it against the supply prices to decide the final selling price. BuyThePrice's technology platform is built on LAMP and hosted on NetMagic.
The funds will go into adding more social features to the site and expanding to Mumbai and New Delhi. They employ 13 people at Hyderabad office and are adding 10 more immediately, according to Ranjith Boyanapalli, Founder and CEO, MyZingo eCommerce Service. They are also opening offices in Delhi and Mumbai.
Consumer electronics is one of the top selling categories online and there are a multitude of players already in this segment such as eBay, Futurebazaar, Videocon's eDigiworld.com, Indiaplaza, Infibeam, Gadgets.in, HomeShop18, Naaptol.com and more. Boyanapalli claims
Angel Investor Rehan Yar Khan reasons: "If you compare it to other ecommerce sites, you will notice it is very well made. Besides, the innovative technology behind it, the way their user base has soared very quickly and their consumer understanding (they had the Nokia X5 as soon as it was launched), all have worked well for them."
Khan is an e-commerce entrepreneur himself as he had founded Flora2000.com, a flower retailer from India targeting global markets. He is also on the board of backup software company Druva Software Pvt Ltd (recently got series A from Sequoia Capital India) and a board advisor of Pune-based Innovize Tech.
"There are many Groupon like sites, we spent a lot of time working on bringing something new. This is more technically complex - we are not plain vanilla ecommerce where we have a list price and sale price," he says.
The site currently offers mobile phones, cameras, computers and PC accessories, mp3 and media players, LED/LCD TVs and kitchen appliances. It will add more brands per category and sub categories but will not get into other retail domains such as books, said Boyanapalli. In January, the company will offer vendors a partner portal to enable them to add more details and update prices on the site, but Buytheprice will continue to have the sole responsibility of the product sale and delivery.
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