Target Information

Sourcewiz is a Software as a Service (SaaS) platform dedicated to digitizing the operations of exporters and export factories in India. The company has recently secured INR 20 Crores in a Pre-Series A funding round, led by Matrix Partners India, along with significant investments from prestigious angel investors including the 100x Entrepreneur Fund, Aniket Deb (Co-Founder of Bizongo), Wami Capital (the family office of Transworld Group), and Rohit Kapoor (Global CMO of Oyo). Previously, Sourcewiz raised $3 million in seed funding in October 2021 from Blume Ventures and Alpha Wave Global.

The platform empowers exporters by automating critical functions, including product design, catalog management, quotation generation, invoicing, and trade show organization. This automation has resulted in average revenue growth of at least 30% for its customers. Within five months of its launch, Sourcewiz successfully onboarded over 300 customers from three different countries, achieving robust monetization and impressive retention rates above 90% for monthly active users. Sourcewiz operates across four export hubs—Delhi, Panipat, Moradabad, and Jaipur—and is currently witnessing demand from both domestic and international markets, including Pakistan and Bangladesh.

Industry Overview

The Indian export landscape is gradually transforming, especially in the lifestyle categories like apparel, home textiles, handicrafts, gems, and furniture. With the increasing emphasis on digitization and modern supply chain processes, Indian exporters are becoming more competitive in the global marketplace. This shift is induced by changing consumer preferences and a global pivot toward sourcing from the subcontinent, making it essential for exporters to leverage technology to enhance productivity and improve customer experiences.

Moreover, the ongoing changes in international supply chains—shifting away from traditional manufacturing hubs like China—present a significant opportunity for Indian exporters to establish themselves as preferred suppliers. However, many factories still lag in adopting digital solutions, making the need for specialized platforms like Sourcewiz even more pressing.

The potential for growth in the Indian export industry is further supported by various government initiatives aimed at promoting 'Make in India' and encouraging digital transformation within manufacturing sectors. These encouragements can help enhance the operational efficiency of small and medium-sized enterprises (SMEs), which constitute a major portion of the export landscape.

Additionally, the increasing access to technology and the internet has enabled broader participation in global trade, empowering small exporters with tools that were once only available to larger corporations. This democratization of technology serves as a catalyst for growth in the Indian export sector.

Rationale Behind the Deal

The recent funding round aims to bolster Sourcewiz's expansion plans by enabling the company to extend its reach to over 10 hubs across the subcontinent. This expansion is expected to solidify Sourcewiz's position as a market leader in factory enablement and enhance its capacity to assist exporters in accessing new demand channels. The funds will also support the development of additional automation features in factory operations, such as procurement and payments.

These strategic investments are fundamental as the industry pivots towards digital solutions to meet the expectations of global partners and improve overall operational efficiency, thereby enhancing competitiveness.

Information About the Investor

Matrix Partners India is a prominent venture capital firm established in 2006, focusing on investments in the Indian consumer and enterprise markets during the seed and early growth stages. The firm has a successful track record of investing in leading B2B marketplaces, such as OfBusiness and Captain Fresh, and has been a part of transformative investments in various sectors including mobility, fintech, and student housing.

With a vast global network, Matrix Partners boasts around $5 billion in assets under management. The firm has actively supported multiple success stories in the Indian startup ecosystem, aligning with innovative companies that demonstrate substantial growth potential.

View of Dealert

Sourcewiz represents a promising investment opportunity in the increasingly essential SaaS sector for exporters in India. The company's rapid traction and high engagement stats indicate a strong market product fit, which is particularly critical given the historical challenges of technology adoption in the Indian factory landscape. With its ambitious plans to expand and enhance service offerings, Sourcewiz stands at a strategic crossroads poised for significant growth.

Moreover, the favorable market conditions, coupled with government initiatives for digitization, create an encouraging environment for Sourcewiz's business model to thrive. As cross-border supply chains increasingly shift in India’s favor, the platform is well-positioned to capitalize on this trend and become a leader in its domain.

However, challenges related to the traditional reluctance of factories to embrace technology could pose hurdles. Continuous support and motivation from investment partners, along with effective customer onboarding, will be critical in overcoming these barriers and achieving sustained growth.

Overall, if Sourcewiz can maintain its growth trajectory and effectively meet the evolving needs of its customer base, it has the potential to become a critical player in the digitization of India's export industry, making this investment a potentially lucrative one.

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