Indian tech company Mahindra has set up a venture capital fund to help build an online presence for its e-commerce business.
The company’s e-tailer, Bollywood Online, has more than 5 million customers, but its primary focus is its online shopping business, where it has set itself apart from other e-retailers by offering discounts on the products and services of the top brands.
The company is set to open its online store in Bengaluru in April.
India has been struggling to catch up with the rest of the world as a major market for online shopping, but Bollywood online is poised to help it out.
The e-tech giant says it has raised about $5 billion to expand its online presence.
The venture capital investment will help the company improve its online business.
Its chief executive, Ankit Dutta, told reporters last week that it is focused on building a strong digital business, while offering a better online experience.
He said the investment was in order to “shape Bollywood into a global technology leader”.
Bollywood Online has been growing fast.
In July, it raised a record $25 million.
It had $3.5 billion in annual revenue in the second quarter of 2017.
Its revenues grew from $6.4 billion to $7.4 million, according to Thomson Reuters data.
The e-online shopping business has helped Mahindras e-stores reach millions of customers and generate an estimated $200 million in revenue, said Dutty.
Bollywood’s online shopping experience is more advanced than its rivals, with its own payment and transaction system, online payments, payment processing and mobile payments.