Axiata Digital, a subsidiary of telecoms firm Axiata, has invested $16m in India-based e-commerce business StoreKing, YourStory reported on Wednesday.
The deal marks the first time Axiata Digital has invested in an India-based startup.
StoreKing, founded in 2012, operates an e-commerce marketplace that operates physical kiosks across more than 1,200 towns for users to order products. The company is particularly targeting rural areas and offers a 6% to 10% commission fee to retailers who install a kiosk in their store.
The company has set up approximately 16,000 such kiosks, delivering some 150,000 orders each month. Axiata Digital’s investment will help StoreKing reach 100,000 retailers by next year and up to 250,000 by 2019.
Additionally, StoreKing hopes to expand into Axiata’s markets. Axiata is based in Malaysia but operates subsidiaries in countries such as Cambodia, Indonesia, Sri Lanka, Singapore, Pakistan and Nepal.
In 2013, Mangrove Capital Partners provided $6m in funding.
Mohd Khairil Abdullah, chief executive of Axiata Digital, said: “StoreKing has created a platform that solves the fundamental constraints in our markets with last-mile logistics and payments, while building trust amongst mass market consumers. It is pivotal in bringing the rest of our consumers into the digital sphere.”