MatexNet to merge operations

Online auctioneer MatexNet is consolidating operations at a cost of Rs 3.8 crore by migrating all its business verticals onto a single platform.

The company has been working on integrating its open source platform with that of client and supplier databases across its five business verticals.

S Yogeshwaran, director, MatexNet, said about one-third of the proposed investment to consolidate its online operations would be ferried in by way of financial institution credits and the rest by way of internal growth accruals.

The consolidation efforts will centre around open source application development as well as scaling up of server resources to match the company's growing seller/buyer base.

With the consolidation likely to ease the pressure on the company's servers over the next few months, MatexNet is also in the process of adding a new dimension to its payments model.

While the auctioneer presently charges customers a fee in the 1.5-10 per cent range for any successful transaction, it eventually plans to rent out its platforms on a fixed monthly fee to corporates.