SyberPlace to raise Rs 400 crore for digital currency

Founded in 2008, the firm is currently funded from internal cash accruals

SyberPlace.com, a Hyderabad-based webstore that sells digital technology such as smartphones, laptops, tablets and accessories, is looking to raise Rs 400 crore from private equity firms, and a part of it by going public in mid-2017, according to its founder and chief executive officer Urvesh Goel.

“With a large consumer base of 320 million mobile internet users to tap into at present, we are looking to bring investors, potential associates and OEMs on board. We wish to capitalise on the 35 per cent CAGR currently being predicted for digital commerce and expand with an increased footprint in top Indian metropolitan cities," he said.

Stating that SyberPlace has been witnessing profitable growth since 2013-14 despite being unfunded, Goel said that the company planned to deploy the proceeds of the proposed fund-raising exercise to support the circulation of ‘1Coin’ digital currency on MeriJeb digital payment solution for smartphone users.

"Rs 400 crore is needed to create a digital currency reserve fund to facilitate circulation of currency. MeriJeb should be able to buy back 1Coins and convert them into INR when any of the participating online merchants so desire," Goel said.

Founded in 2008, SyberPlace is currently funded from internal cash accruals. At present, the company clocks a GMV (gross merchandise value) run rate of Rs 100 crore. It is targeting to garner a GMV of Rs 1,200 crore by March 2017.

SyberPlace intends to give cashbacks to its customers in 1Coin digital currency, which is equivalent to one INR. Customers who earn 1Coins can use this private virtual currency to pay for purchases made from more than 100 online merchants across different categories, including electronics, groceries, cab rides, travel, hospitality, fashion and entertainment.

According to Goel, cashback on smartphones and FMCG in private currency would be the next big thing. If Goel has his way, private currency will be the currency for cashbacks by 2020.