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JSW One Platforms, the e-commerce venture of JSW Group, expects to record a gross merchandise value (GMV) of Rs 3,000 crore by March 2023, and more than double it to Rs 7,500 crore by the end of FY24. The company expects to achieve break-even at an exit run rate of Rs 40,000 crore GMV by FY27.
GMV is a financial metric to measure the total value of sales of an e-commerce firm.
“Growth is coming from newer geographies, newer stock-keeping units (SKUs) that are being added on to the platform and newer categories like concrete, ready-mix concrete, electricals, tiles, sanitaryware and bricks. We will expand our MSME business to the entire south and west, and we will also make inroads into the north,” JSW One Platforms’ CEO Gaurav Sachdeva told FE in an interaction.
At present, JSW One Platforms’ micro, small and medium enterprises (MSME) business has a presence in Tamil Nadu, Karnataka, Telangana, Maharashtra and Gujarat.
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“We are on track to deliver Rs 3,000 crore of exit run-rate in FY23,” Sachdeva added.
JSW One Platforms, a technology platform venture, has two business divisions – JSW One MSME (B2B venture) and JSW One Homes (B2C venture) – and started operations with an initial corpus of Rs 250 crore in July 2021.
The Sajjan Jindal-led JSW Group – which has a presence in sectors such as steel, paint and cement – will invest another Rs 4,000 crore in the technology platform in the next five years. A part of the funding would be raised from strategic investors or private equity funds.
“We expect to break even by FY27 with an exit run rate of $5 billion (about Rs 40,000 crore) GMV,” he added.
“There is a lot of tailwind in the MSME segment. The ‘Make in India’ programme, and a lot of MSMEs – across auto components, consumer durables and project customers – are buying material from us and are exporting their finished goods. The growth in infrastructure development is another significant tailwind for us,” he added.
Following the break-even, the company may also explore the option of an initial public offering and get a non-banking finance company licence sometime later. The firm which has about 270 employees, of which one-third are techies, plans to double its headcount by June next year.
JSW One Platforms, which currently owns a third of its logistics, also intends to move its entire material on its logistics by next year.
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