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CCube Angels to invest in edabba.com

Bangalore, September 3, 2013:
Singapore-based angel investing group CCube Angels has agreed to buy a minority stake in Omnipresent Retail India, which runs online retail portal edabba.com. CCube will invest Rs 4.5 crore in the Delhi-based startup, but did not reveal the exact stake it will buy.

edabba sells a range of products, including electronics, personal accessories and jewellery - mostly in smaller towns and cities - and is supported by over 400 contact centres offering aftersales service.

"Neither brick nor click alone can service the aspiring customers of 'Bharat' satisfactorily," said Manoj Kumar, cofounder and chief executive of Omnipresent, on his company's strategy in rural India. Kumar, formerly the head of electronic retail at Future Group, teamed up with his colleague Saurabh B Chadha to launch edabba in 2011.

"We are able to provide the benefits of e-commerce to a class of customers that cannot ordinarily access computer and internet and do not have credit or debit cards," said Kumar, an alumnus of IIM-Lucknow.

edabba's model hinges on collaborating with local shops in its target markets as well as a strong back-end technology platform and supply chain. The company will use the latest round of funding to expand its contact centres to over 1,000 in the next six months.

Between 2009 and 2012, spending in rural India reached $69 billion (Rs 4.2 lakh crore) compared with $55 billion (Rs 3.3 lakh crore) spent by urban India, according to a report by Accenture.

"The team at edabba represents a push-based differentiated model of e-commerce, which is particularly well-suited for an emerging and fast-growing online market like India," said Atim Kabra, founder of CCube.

The angel investor group, which invests up to Rs 10 crore in a company, has also backed other Indian startups such as Reasoning Global eApplications, Simbus Technologies, Applied Mobile Technologies and Myadcorner.com.