Club Factory raises fresh funds

E-commerce player Club Factory has raised funds in a Series D round of financing. This is the third-largest e-commerce shopping app in India. Any legally qualified Indian seller can sell on Club Factory. The store-within-platform allows direct contact between buyers and sellers. Having changed the status of the Indian e-commerce industry that monopolized information of buyers and sellers, Club Factory allows small and medium enterprises to own their customers and run their business better. All this, combined with the strategy to reduce the transaction costs of buyers and sellers and allow more local players to enter the ecosystem, has worked very well for the company.

The rapid growth of Club Factory in the Indian market is primarily due to its zero-commission strategy, where sellers are able to transfer the cost-benefit to users. India has the world’s second-largest population with the purchasing power parity ranked third worldwide. A huge market like this undoubtedly has diversified market demand, but many players pursue a narrow range of products through a closed ecosystem. Indian customers also need another kind of e-commerce platform – a more open one – which provides more options to customers and more vitality to the e-commerce field. This is why Club Factory has been able to rapidly grow in India.