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- Peter Drucker

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Exfinity Technology Fund invests in Sabonka Technologies
23 December

Exfinity fund has made its ninth investment in Shotang.com (product of Sabonka Technologies Pvt. Ltd.) along with Unitus Impact Fund that has also participated in the round. Shotang is building a platform through which distributors can discover, transact and interact with retailer partners in their network thus helping them to streamline their current manual business processes. Shotang’s vision is to become a master distribution platform with various plug-ins for logistics partners, payment solutions, credit solutions, ERP/Supply chain softwares where-in manufacturers can use the platform to deal directly with the retailers thereby making the supply chain efficient.

Distribution channels are pathways along which products travel from producers and manufacturers to end customers. They are the routes through which products, information and finance move along the supply chain. An effective channel can be a source of strategic advantage for the companies. Distribution channel structure in India is largely traditional and quite unique. While some manufacturers deal with their customers directly, most manufacturers use a distribution channel to take products to consumers. 92% of the USD 534 billion retail business in India comes from the fragmented unorganized sector which is catered to by the distributors. These distributors work on wafer thin margins with major challenges in manual ordering, payment collections, high credit risk exposure, high manpower and operational challenges. Retailers on the other hand generally end up maintaining higher inventories than would otherwise be required due to poor visibility on distributor inventory. To deal with pressure on costs and services, technology and automation are integral to overcoming these challenges.

Shotang leverages on the existing infrastructure and trade relationships. Its strategy of on-boarding retailers through distributors ensures faster outreach and also benefits all entities in the ecosystem. Through the platform, the distributor can showcase his inventory to the retailers in his network who in-turn can place orders through the platform. This helps the distributor in demand aggregation, forecasting, inventory management and also accepting payments. Retailers have visibility on order status, better managed accounts, access to credit, and faster replenishment of stocks. Once Shotang becomes a master distribution platform, it will be able to able to improve  the margins that distributors make today, making it a billion-dollar opportunity.

The promoters, Mr. Anish Basu Roy and Mr. Anterpreet Singh, have relevant industrial experience and deep understanding of distribution channels. Presently the company has 25+ distributors and 1200+ retailers signed up for their platform.