iQuippo looks to reach Rs 100 crore revenue mark by March 2020, ET RealEstate

June 23, 2023

NEW DELHI: iQuippo, part of Srei Infrastructure Finance, is looking to double its revenue growth and hopes to reach Rs 100 crore revenue mark by March 2020. According to Anant Raj Kanoria, CEO of the company, they started breaking-even by March 2018 and now they plans to double this growth.

Started in 2017, iQuippo is a digital platform offering services to both buyers and sellers which include buying/selling construction equipment, renting assets, machinery valuation, auction of machinery/construction equipment and equipment financing. As of February 2019, it has 75,000 registered users on its platform and has received Rs 10 crore funding from Kanoria Foundation.

Kanoria is banking on buying/selling construction equipment and financing segment to drive company’s growth in coming years. About 80 per cent of company’s current revenue comes from these segments.

The company has tied up with eight manufacturers i.e. JCB, Hitachi, Sany, Komatsu, Kobelco, Volvo, Kubota and Daimler to bring on-board new construction equipment on its platform. Kanoria hopes a good growth in construction equipment segment.

“There has been a 40% growth in the sale of construction equipment in the last one year mainly because of the government projects that have been awarded. Even the state government and municipal corporations have also started giving out major tenders. About 25-30 per cent of this project’s cost goes into construction equipment,” explained Kanoria.

iQuippo sells both used and new construction equipment. “In the used-equipment’s segment we have about 3-5 per cent margin while in the new-equipment’s segment it is 1-2 per cent,” says Kanoria.

Another segment that Kanoria is banking upon in equipment financing. In the last one year, iQuippo has done Rs 2,800 crore worth of equipment financing.

The company has tied-up with ICICI Bank, HDFC Bank, Axis Bank, Yes Bank and United Bank of India to provide equipment financing various equipment categories like construction, mining, material handling, commercial vehicles, medical and farm equipment.

It has also started to jointly provide equipment financing under co-lending arrangement for various equipment categories. As of now it has tied-up with ICICI Bank, United Bank of India and Syndicate Bank for this.

Under the co-lending scheme, Srei Equipment Finance, iQuippo’s sister concern, along with banks will offer loan at 12% (approx) interest. “It is still better than what is being offered in the market. Also, it helps reduce banks exposure to non-performing assets (NPAs),” said Kanoria.

The company claims to have done valuations of equipment worth Rs 2,700 crore in last one year. It carries out valuations of equipment of contractors which they want to refinance from banks. It also valuate assets which banks has repossessed.

Interestingly there are times when based on iQuippo’s valuations, banks put-up construction equipment for auctions on the former’s platform. For both iQuippo charges a commission.

Apart from these segments, it has also started to offer its yards for third-party parking and fleet management. “This will help in covering the yard’s cost and generate some profit (2-3%),” added Kanoria.

Future plans

iQuippo also plans to raise Rs 100-200 crore by the third quarter of financial year 2020.

In the next financial year, Kanoria plans to start spare parts segment. He also hopes that 50 per cent of equipment financing to happen from the platform in future.

It is in the process to develop an IoT device that will help to drive in rental assets’ segment and has tied-up with IBM to develop the technology.

  • Published On Mar 1, 2019 at 12:30 PM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETRealty App

  • Get Realtime updates
  • Save your favourite articles

Scan to download App

Source link

Abhay Singh

Web Developer

Leave a Comment