The new-kid-on-the-block in the barter business is one-and-a-half-year-old TradeX, part of the Bangalore headquartered Synapse Trade Solutions. After establishing its presence in the South, and registering revenues of Rs 20 crore in its first year of operations, the company is now looking to expand.
TradeX started off with offices in Bangalore, Chennai and Delhi, and its recent expansion was in the form of its Mumbai and Kolkata operations that started three months ago. In the interim, it had set up offices in Cochin and Coimbatore, and also handles its Hyderabad business from its Bangalore and Chennai offices.
Speaking to exchange4media, R Ananda Krishnan, Head-Business Development, TradeX, said, “Now we have a strong presence in the South and in Delhi. The recently opened offices, too, are doing well, and we want to expand further up North. In the coming financial year, we will set up offices in Pune and Chandigarh.”
An office in Pune is seen as a gateway to a lot of manufacturers in the city, and also to those in other cities like Aurangabad. The company services clients in Chandigarh from its Delhi office at present.
“We are set to close FY 2006 with a 50 per cent growth. The growth in terms of sheer numbers could have been faster, it could easily have been 100 per cent, but we want to have a stable growth while retaining our existing client base and continuing to deliver for them. We are aiming for Rs 50 crore business by FY 2007 with our current expansion,” added Krishnan.
TradeX claims a base of 400 to 500 active clients. Even with several established players and big names in the space, a sizeable part of barter deals in the industry still happen directly between the two parties involved. The multi-party barter industry is composed of a handful of organised players and many more small organisations and individuals. And it’s not just savings of the 10-15 per cent commission that keeps clients away from barter operators.
While barter as a business was growing, the challenges included building trust in the system among certain client constituents, said Krishnan. “As a barter company, we are just another avenue to reach out to audiences and facilitate institutional sales – we shouldn’t be misusing that position. A huge challenge is to build back the faith. Today, the industry is growing and even the so-called conservative companies are looking at barter because it’s a win-win proposition,” he explained.
TradeX, which started off with 15 people who moved out of another organisation dealing in multi-party barter, is today 28-member strong. And growing.
Barterbiz institutionalises age-old practice of conducting business