Nov
30
2020
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Materialize scores $40 million investment for SQL streaming database

Materialize, the SQL streaming database startup built on top of the open-source Timely Dataflow project, announced a $32 million Series B investment led by Kleiner Perkins, with participation from Lightspeed Ventures.

While it was at it, the company also announced a previously unannounced $8 million Series A from last year, led by Lightspeed, bringing the total raised to $40 million.

These firms see a solid founding team that includes CEO Arjun Narayan, formerly of Cockroach Labs, and chief scientist Frank McSherry, who created the Timely Dataflow project on which the company is based.

Narayan says that the company believes fundamentally that every company needs to be a real-time company, and it will take a streaming database to make that happen. Further, he says the company is built using SQL because of its ubiquity, and the founders wanted to make sure that customers could access and make use of that data quickly without learning a new query language.

“Our goal is really to help any business to understand streaming data and build intelligent applications without using or needing any specialized skills. Fundamentally what that means is that you’re going to have to go to businesses using the technologies and tools that they understand, which is standard SQL,” Narayan explained.

Bucky Moore, the partner at Kleiner Perkins leading the B round, sees this standard querying ability as a key part of the technology. “As more businesses integrate streaming data into their decision-making pipelines, the inability to ask questions of this data with ease is becoming a non-starter. Materialize’s unique ability to provide SQL over streaming data solves this problem, laying the foundation for them to build the industry’s next great data platform,” he said.

They would naturally get compared to Confluent, a streaming database built on top of the Apache Kafka open-source streaming database project, but Narayan says his company uses straight SQL for querying, while Confluent uses its own flavor.

The company still is working out the commercial side of the house and currently provides a typical service offering for paying customers with support and a service agreement (SLA). The startup is working on a SaaS version of the product, which it expects to release some time next year.

They currently have 20 employees with plans to double that number by the end of next year as they continue to build out the product. As they grow, Narayan says the company is definitely thinking about how to build a diverse organization.

He says he’s found that hiring in general has been challenging during the pandemic, and he hopes that changes in 2021, but he says that he and his co-founders are looking at the top of the hiring funnel because otherwise, as he points out, it’s easy to get complacent and rely on the same network of people you have been working with before, which tends to be less diverse.

“The KPIs and the metrics we really want to use to ensure that we really are putting in the extra effort to ensure a diverse sourcing in your hiring pipeline and then following that through all the way through the funnel. That’s I think the most important way to ensure that you have a diverse [employee base], and I think this is true for every company,” he said.

While he is working remotely now, he sees having multiple offices with a headquarters in NYC when the pandemic finally ends. Some employees will continue to work remotely, with the majority coming into one of the offices.

Nov
17
2020
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Cato Network snags $130M Series E on $1B valuation as cloud wide area networking thrives

Cato Networks has spent the last five years building a cloud-based wide area network that lets individuals connect to network resources regardless of where they are. When the pandemic hit, and many businesses shifted to work from home, it was the perfect moment for technology like this. Today, the company was rewarded with a $130 million Series E investment on $1 billion valuation.

Lightspeed Venture Partners led the round, with participation from new investor Coatue and existing investors Greylock, Aspect Ventures/Acrew Capital, Singtel Innov8 and Shlomo Kramer (who is the co-founder and CEO of the company). The company reports it has now raised $332 million since inception.

Kramer is a serial entrepreneur. He co-founded Check Point Software, which went public in 1996, and Imperva, which went public in 2011 and was later acquired by private equity firm Thoma Bravo in 2018. He helped launch Cato in 2015. “In 2015, we identified that the wide area networks (WANs), which is a tens of billions of dollars market, was still built on the same technology stack […] that connects physical locations, and appliances that protect physical locations and was primarily sold by the telcos and MSPs for many years,” Kramer explained.

The idea with Cato was to take that technology and redesign it for a mobile and cloud world, not one that was built for the previous generation of software that lived in private data centers and was mostly accessed from an office. Today they have a cloud-based network of 60 Points of Presence (PoPs) around the world, giving customers access to networking resources and network security no matter where they happen to be.

The bet they made was a good one because the world has changed, and that became even more pronounced this year when COVID hit and forced many people to work from home. Now suddenly having the ability to sign in from anywhere became more important than ever, and they have been doing well, with 2x growth in ARR this year (although he wouldn’t share specific revenue numbers).

As a company getting Series E funding, Kramer doesn’t shy away from the idea of eventually going public, especially since he’s done it twice before, but neither is he ready to commit any time table. For now, he says the company is growing rapidly, with almost 700 customers — and that’s why it decided to take such a large capital influx right now.

Cato currently has 270 employees, with plans to grow to 400 by the end of next year. He says that Cato is a global company with headquarters in Israel, where diversity involves religion, but he is trying to build a diverse and inclusive culture regardless of the location.

“My feeling is that inclusion needs to happen in the earlier stages of the funnel. I’m personally involved in these efforts, at the educational sector level, and when students are ready to be recruited by startups, we are already competitive, and if you look at our employee base it’s very diverse,” Kramer said.

With the new funds, he plans to keep building the company and the product. “There’s a huge opportunity and we want to move as fast as possible. We are also going to make very big investments on the engineering side to take the solution and go to the next level,” he said.

Sep
08
2020
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Hasura raises $25 million Series B and adds MySQL support to its GraphQL service

Hasura, a service that provides developers with an open-source engine that provides them a GraphQL API to access their databases, today announced that it has raised a $25 million Series B round led by Lightspeed Venture Partners. Previous investors Vertex Ventures US, Nexus Venture Partners, Strive VC and SAP.iO Fund also participated in this round.

The new round, which the team raised after the COVID-19 pandemic had already started, comes only six months after the company announced its $9.9 million Series A round. In total, Hasura has now raised $36.5 million.

“We’ve been seeing rapid enterprise traction in 2020. We’ve wanted to accelerate our efforts investing in the Hasura community and our cloud product that we recently launched and to ensure the success of our enterprise customers. Given the VC inbound interest, a fundraise made sense to help us step on the gas pedal and give us room to grow comfortably,” Hasura co-founder and CEO Tanmai Gopal told me.

In addition to the new funding, Hasura also today announced that it has added support for MySQL databases. Until now, the company’s service only worked with PostgreSQL databases.

Rajoshi Ghosh, co-founder and COO (left) and Tanmai Gopal, co-founder and CEO (right).

Rajoshi Ghosh, co-founder and COO (left) and Tanmai Gopal, co-founder and CEO (right). Image Credits: Hasura

As the company’s CEO and co-founder Tanmai Gopal told me, MySQL support has long been at the top of the most requested features by the service’s users. Many of these users — who are often in the healthcare and financial services industry — are also working with legacy systems they are trying to connect to modern applications and MySQL plays an important role there, given how long it has been around.

In addition to adding MySQL support, Hasura is also adding support for SQL Server to its lineup, but for now, that’s in early access.

“For MySQL and SQL Server, we’ve seen a lot of demand from our healthcare and financial services / fin-tech users,” Gopal said. “They have a lot of existing online data, especially in these two databases, that they want to activate to build new capabilities and use while modernizing their applications.

Today’s announcement also comes only a few months after the company launched a fully managed cloud service for its service, which complements its existing paid Pro service for enterprises.

“We’re very impressed by how developers have taken to Hasura and embraced the GraphQL approach to building applications,” said Gaurav Gupta, partner at Lightspeed Venture Partners and Hasura board member. “Particularly for front-end developers using technologies like React, Hasura makes it easy to connect applications to existing databases where all the data is without compromising on security and performance. Hasura provides a lovely bridge for re-platforming applications to cloud-native approaches, so we see this approach being embraced by enterprise developers as well as front-end developers more and more.”

The company plans to use the new funding to add support for more databases and to tackle some of the harder technical challenges around cross-database joins and the company’s application-level data caching system. “We’re also investing deeply in company building so that we can grow our GTM and engineering in tandem and making some senior hires across these functions,” said Gopal.

Feb
23
2020
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Lightspeed leads Laiye’s $42M round to bet on Chinese enterprise IT

Laiye, a Chinese startup that offers robotic process automation services to several major tech firms in the nation and government agencies, has raised $42 million in a new funding round as it looks to scale its business.

The new financing round, Series C, was co-led by Lightspeed Venture Partners and Lightspeed China Partners. Cathay Innovation, which led the startup’s Series B+ round and Wu Capital, which led the Series B round, also participated in the new round.

China has been the hub for some of the cheapest labor in the world. But in recent years, a number of companies and government agencies have started to improve their efficiency with the help of technology.

That’s where Laiye comes into play. Robotic process automation (RPA) allows software to mimic several human behaviors such as keyboard strokes and mouse clicks.

“For instance, a number of banks did not previously offer APIs, so humans had to sign in and fetch the data and then feed it into some other software. Processes like these could be automated by our platform,” said Arvid Wang, co-founder and co-chief executive of Laiye, in an interview with TechCrunch.

The four-and-a-half-year-old startup, which has raised more than $100 million to date, will use the fresh capital to hire talent from across the globe and expand its services. “We believe robotic process automation will achieve its full potential when it combines AI and the best human talent,” he said.

Laiye’s announcement today comes as the market for robotic automation process is still in nascent stage in China. There are a handful of startups looking into this space, but Laiye, which counts Microsoft as an investor, and Sequoia-backed UiPath are the two clear leaders in the market.

As my colleague Rita Liao wrote last year, it was only recently that some entrepreneurs and investors in China started to shift their attention from consumer-facing products to business applications.

Globally, RPA has emerged as the fastest growing market in enterprise space. A Gartner report found last year that RPA market grew over 63% in 2018. Recent surveys have shown that most enterprises in China today are also showing interest in enhancing their RPA projects and AI capabilities.

Laiye today has more than 200 partners and more than 200,000 developers have registered to use its multilingual UiBot RPA platform. UiBot enables integration with Laiye’s native and third-party AI capabilities such as natural language processing, optical character recognition, computer vision, chatbot and machine learning.

“We are very bullish on China, and the opportunities there are massive,” said Lightspeed partner Amy Wu in an interview. “Laiye is doing phenomenally there, and with this new fundraise, they can look to expand globally,” she said.

Feb
05
2020
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Where top VCs are investing in open source and dev tools (Part 2 of 2)

In part two of a survey that asks top VCs about exciting opportunities in open source and dev tools, we dig into responses from 10 leading open-source-focused investors at firms that span early to growth stage across software-specific firms, corporate venture arms and prominent generalist firms.

In the conclusion to our survey, we’ll hear from:

These responses have been edited for clarity and length.

Oct
24
2019
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Grafana Labs nabs $24M Series A for open source-based data analytics stack

Grafana Labs, the commercial company built to support the open-source Grafana project, announced a healthy $24 million Series A investment today. Lightspeed Venture Partners led the round with participation from Lead Edge Capital.

Company CEO and co-founder Raj Dutt says the startup started life as a way to offer a commercial layer on top of the open-source Grafana tool, but it has expanded and now supports other projects, including Loki, an open-source monitoring tool not unlike Prometheus, which the company developed last year.

All of this in the service of connecting to data sources and monitoring data. “Grafana has always been about connecting data together no matter where it lives, whether it’s in a proprietary database, on-prem database or cloud database. There are over 42 data sources that Grafana connects together,” Dutt explained.

But the company has expanded far beyond that. As it describes the product set, “Our products have begun to evolve to unify into a single offering: the world’s first composable open-source observability platform for metrics, logs and traces. Centered around Grafana.” This is exactly where other monitoring and logging tools like Elastic, New Relic and Splunk have been heading this year. The term “observability” is a term that’s been used often to describe these combined capabilities of metrics, logging and tracing.

Grafana Labs is the commercial arm of the open-source projects, and offers a couple of products built on top of these tools. First of all it has Grafana Enterprise, a package that includes enterprise-focused data connectors, enhanced authentication and security and enterprise-class support over and above what the open-source Grafana tool offers.

The company also offers a SaaS version of the Grafana tool stack, which is fully managed and takes away a bunch of the headaches of trying to download raw open-source code, install it, manage it and deal with updates and patches. In the SaaS version, all of that is taken care of for the customer for a monthly fee.

Dutt says the startup took just $4 million in external investment over the first five years, and has been able to build a business with 100 employees and 500 customers. He is particularly proud of the fact that the company is cash flow break-even at this point.

Grafana Labs decided the time was right to take this hefty investment and accelerate the startup’s growth, something they couldn’t really do without a big cash infusion. “We’ve seen this really virtuous cycle going with value creation in the community through these open-source projects that builds mind share, and that can translate into building a sustainable business. So we really want to accelerate that, and that’s the main reason behind the raise.”

Sep
25
2019
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Arceo.ai raises $37 million to expand cyber insurance coverage and access

Critical cyber attacks on both businesses and individuals have been grabbing headlines at an alarming rate. Cybersecurity has moved from a background risk for enterprises to a critical day-to-day threat to business operations, forcing executive teams to pour time and hundreds of billions in capital into monitoring and prevention efforts.

Yet even as investment in security ticks up, the frequency and cost of cybercrime to businesses continues to rapidly accelerate, with the World Economic Forum estimating the economic loss due to cybercrime could reach $3 trillion by 2020.

More companies are now turning to cyber insurance as a means of mitigating financial exposure. However, for traditional insurers, cybersecurity remains a relatively nascent and unfamiliar issue, requiring risk-assessment data points and methodologies largely different from those seen in traditional insurance products. As a result, businesses often struggle to get the scale of cybersecurity coverage they require.

Arceo.ai is hoping to expand the size and scope of the cyber insurance market for both insurers and companies, by providing insurers with effective real-time data, analytics and context, necessary for safely and efficiently underwrite cyber risk.

This morning, Arceo took a major step in achieving that goal, announcing the company has raised a $37 million round of funding led by Lightspeed Venture Partners and Founders Fund with participation from CRV and  UL Ventures.

Arceo logoUsing an expansive set of global sources across a customer’s digital footprint, Arceo.AI collects internal, external and macro cyber risk data which it uses to evaluate a company’s security and cyber risk management behavior. By automating the data collection process and connecting it with insurer underwriting processes, Arceo is able to keep its data and policy assessments up to date in real-time and enable faster, more efficient quotes.

A vital component of Arceo’s platform is its analytics offering. Using patented data science and cyber risk models, Arceo generates analytics-driven insights for insurance carriers, brokers and end-insured customers. For end-insured customers, Arceo helps companies understand whether they’re using the best mitigation strategies by providing policy recommendations and industry benchmarking to help contextualize day-to-day cyber behavior and hygiene. For underwriters, Arceo can provide specific insurance recommendations based on particular policy coverages.

Ultimately, Arceo looks to provide both insurers and the insured with actionable answers to key questions such as how one assesses cyber risk, how one determines what risks can be mitigated with technology alone, how one knows which systems are best and whether those systems are being used appropriately.

Raj Shah

Arceo.ai Chairman Raj Shah. Image via Arceo.ai

In an interview with TechCrunch, Arceo Chairman Raj Shah explained that the company’s background expertise, proprietary data systems, and deep pedigree in both the security and insurance truly differentiate Arceo from competing solutions. For starters, both Shah and Arceo co-founder and CEO Vishaal Hariprasad have spent close to the entirety of their careers in national security and cybersecurity. Hariprasad started his career in the Airforce’s first cohort of cyber warfare officers, before teaming up with Shah to start Morta Security in 2012, a security startup the two sold to Palo Alto networks in just roughly two years.

After selling the company, Shah and Hariprasad remained in the security world before realizing that there was a natural intersection between security and insurance, and a real opportunity for risk transfer solutions.

“Having studied the market, we saw that people are spending more and more dollars on cybersecurity products… There are hundreds of thousands of new vendors every year… Spend is going up, but we don’t feel any safer!” Shah told TechCrunch.

“That’s when we said ‘Hey, we need to move beyond just thinking about technology points and products, and think about holistic cyber risk management.’ And this is where insurance has historically done a great job. Putting a price on behavior and making people think and letting them take risks… From life and death and health to buyers and property and casualty. And so cyber is that next class risk… So that’s really why we started the business. We wanted to provide a real way to manage the cyber stress that they’re facing and that will impact every single one of our digital lives.”

Since the company’s founding, Raj and Vishaal have been joined by a deep network of cyber and insurance experts. Today, Arceo also announced that Hemant Shah, founder and former CEO of catastrophe risk modeling company RMS has joined Arceo’s Board of Directors. Additionally, earlier this month, the company announced that Mario Vitale, the former CEO of publically-traded insurance companies Willis Towers Watson and Zurich Insurance Group, would be joining the Arceo team as the company’s President.

The company noted that participation from high-profile industry vets like Hemant and Mario not only further advance Arceo’s competitive advantage but also acts as another major validation of the company’s future and work to date.

According to Arceo Chairman Raj Shah, after years of investing in R&D, the latest funds will be used towards expansion efforts and scaling Arceo to the broader ecosystem of insurance and brokers. Longer-term, the company hopes to offer the most complete combined cybersecurity and risk transfer solution to insurers and the insured, easing the stress around cyber threats for both enterprises and individuals and ultimately improving broader cyber resiliency.

If you’d like to hear more from Arceo’s Raj Shah, Raj will also be joining us this year on the Extra Crunch stage at TechCrunch Disrupt SF, where he’ll discuss how founders and companies should think about potential US government investment. Grab tickets here and we hope to see you there!

Jul
30
2019
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Confluera snags $9M Series A to help stop cyberattacks in real time

Just yesterday, we experienced yet another major breach when Capital One announced it had been hacked and years of credit card application information had been stolen. Another day, another hack, but the question is how can companies protect themselves in the face of an onslaught of attacks. Confluera, a Palo Alto startup, wants to help with a new tool that purports to stop these kinds of attacks in real time.

Today the company, which launched last year, announced a $9 million Series A investment led by Lightspeed Venture Partners . It also has the backing of several influential technology execs, including John W. Thompson, who is chairman of Microsoft and former CEO at Symantec; Frank Slootman, CEO at Snowflake and formerly CEO at ServiceNow; and Lane Bess, former CEO of Palo Alto Networks.

What has attracted this interest is the company’s approach to cybersecurity. “Confluera is a real-time cybersecurity company. We are delivering the industry’s first platform to deterministically stop cyberattacks in real time,” company co-founder and CEO Abhijit Ghosh told TechCrunch.

To do that, Ghosh says, his company’s solution watches across the customer’s infrastructure, finds issues and recommends ways to mitigate the attack. “We see the problem that there are too many solutions which have been used. What is required is a platform that has visibility across the infrastructure, and uses security information from multiple sources to make that determination of where the attacker currently is and how to mitigate that,” he explained.

Microsoft chairman John Thompson, who is also an investor, says this is more than just real-time detection or real-time remediation. “It’s not just the audit trail and telling them what to do. It’s more importantly blocking the attack in real time. And that’s the unique nature of this platform, that you’re able to use the insight that comes from the science of the data to really block the attacks in real time.”

It’s early days for Confluera, as it has 19 employees and three customers using the platform so far. For starters, it will be officially launching next week at Black Hat. After that, it has to continue building out the product and prove that it can work as described to stop the types of attacks we see on a regular basis.

Jul
23
2019
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Arrcus snags $30M Series B as it tries to disrupt networking biz

Arrcus has a bold notion to try and take on the biggest names in networking by building a better networking management system. Today it was rewarded with a $30 million Series B investment led by Lightspeed Venture Partners.

Existing investors General Catalyst and Clear Ventures also participated. The company previously raised a seed and Series A totaling $19 million, bringing the total raised to date to $49 million, according to numbers provided by the company.

Founder and CEO Devesh Garg says the company wanted to create a product that would transform the networking industry, which has traditionally been controlled by a few companies. “The idea basically is to give you the best-in-class [networking] software with the most flexible consumption model at the lowest overall total cost of ownership. So you really as an end customer have the choice to choose best-in-class solutions,” Garg told TechCrunch.

This involves building a networking operating system called ArcOS to run the networking environment. For now, that means working with manufacturers of white-box solutions and offering some combination of hardware and software, depending on what the customer requires. Garg says that players at the top of the market like Cisco, Arista and Juniper tend to keep their technical specifications to themselves, making it impossible to integrate ArcOS with those companies at this time, but he sees room for a company like Arrcus .

“Fundamentally, this is a very large marketplace that’s controlled by two or three incumbents, and when you have lack of competition you get all of the traditional bad behavior that comes along with that, including muted innovation, rigidity in terms of the solutions that are provided and these legacy procurement models, where there’s not much flexibility with artificially high pricing,” he explained.

The company hopes to fundamentally change the current system with its solutions, taking advantage of unbranded hardware that offers a similar experience but can run the Arrcus software. “Think of them as white-box manufacturers of switches and routers. Oftentimes, they come from Taiwan, where they’re unbranded, but it’s effectively the same components that are used in the same systems that are used by the [incumbents],” he said.

The approach seems to be working, as the company has grown to 50 employees since it launched in 2016. Garg says that he expects to double that number in the next six-nine months with the new funding. Currently the company has double-digit paying customers and more than 20 in various stages of proofs of concepts, he said.

Jul
05
2019
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A 23-year-old B2B company has shown how keen India is for tech IPOs

Away from the limelight of the press and the frenzy of fundraising, a tech startup in India has achieved a feat that few of its peers have managed: going public.

IndiaMART, the country’s largest online platform for selling products directly to businesses, raised nearly $70 million in a rare tech IPO for India this week.

The milestone for the 23-year-old firm is so uncommon for India’s otherwise burgeoning startup ecosystem that, beyond being over-subscribed 36 times, pent up demand for IndiaMART’s stock saw its share price pop 40% on its first day of trading on National Stock Exchange on Thursday — a momentum that it sustained on Friday.

The stock ended Friday at Rs 1326 ($19.3), compared to its issue price of Rs 973 ($14.2).

IndiaMART is the first business-to-business e-commerce firm to go public in India. Its IPO also marks the first listing for a firm following the May reelection of Narendra Modi as the nation’s Prime Minister and the months-long drought that led to it.

Accounting firm EY said it expects more companies from India to follow suit and file for IPO in the coming months.

“Now that national elections are over and favorable results secured, IPO activity is expected to gain momentum in H2 2019 (second half of the year). Companies that had filed their offer documents with the Indian stock markets regulator during H2 2018 and Q1 2019 may finally come to market in the months ahead,” it said in a statement (PDF).

IndiaMART’s origin

The fireworks of the IPO are just as impressive as IndiaMART’s journey.

The startup was founded in 1996 and for the first 13 years, it focused on exports to customers abroad, but it has since modernized its business following the wave of the internet.

“The thesis was, in 1996, there were no computers or internet in India. The information about India’s market to the West was very limited,” Dinesh Agarwal, co-founder and CEO of IndiaMART, told TechCrunch in an interview.

Until 2008, IndiaMART was fully bootstrapped and profitable with $10 million in revenue, Agarwal said. But things started to dramatically change in that year.

“The Indian rupee became very strong against the dollar, which dwindled the exports business. This is also when the stock market was collapsing in the West, which further hurt the exports demand,” he explained.

GettyImages 519406304

Dinesh Agarwal, founder and CEO of IndiaMart.com, poses for a profile shot on July 29, 2015 in Noida, India.

By this time, millions of people in India were on the internet and, with tens of millions of people owning a feature phone, the conditions of the market had begun to shift towards digital.

“This is when we decided to pursue a completely different path. We started to focus on the domestic market,” Agarwal said.

Over the last 10 years, IndiaMART has become the largest e-commerce platform for businesses with about 60% market share, according to research firm KPMG. It handles 97,000 product categories — ranging from machine parts, medical equipment and textile products to cranes — and has amassed 83 million buyers and 5.5 million suppliers from thousands of towns and cities of India.

According to the most recent data published by the Indian government, there are about 50 to 60 million small and medium-sized businesses in India, but only around 10 million of them have any presence on the web. Some 97% of the top 50 companies listed on National Stock Exchange use IndiaMART’s services, Agarwal said.

That’s not to say that the transition to the current day was a straightforward process for the company. IndiaMART tried to capitalize on its early mover advantage with a stream of new services which ultimately didn’t reap the desired rewards.

In 2002, it launched a travel portal for businesses. A year later, it launched a business verification service. It also unveiled a payments platform called ABCPayments. None of these services worked and the firm quickly moved on.

Part of IndiaMART’s success story is its firm leadership and how cautiously it has raised and spent its money, Rajesh Sawhney, a serial angel investor who sits on IndiaMART’s board, told TechCrunch in an interview.

IndiaMART, which employs about 4,000 people, is operationally profitable as of the financial year that ended in March this year. It clocked some $82 million in revenue in the year. It has raised about $32 million to date from Intel Capital, Amadeus Capital Partners and Quona Capital. (Notably, Agarwal said that he rejected offers from VCs for a very long time.)

The firm makes most of its revenue from subscriptions it sells to sellers. A subscription gives a seller a range of benefits including getting featured on storefronts.

Where the industry stands

There are only a handful of internet companies in India that have gone public in the last decade. Online travel service MakeMyTrip went public in 2010. Software firm Intellect Design Arena and e-commerce store Koovs listed in 2014, then travel portal Yatra and e-commerce firm Infibeam followed two years later.

India has consistently attracted billions of dollars in funding in recent years and produced many unicorns. Those include Flipkart, which was acquired by Walmart last year for $16 billion, Paytm, which has raised more than $2 billion to date, Swiggy, which has bagged $1.5 billion to date, Zomato, which has raised $750 million, and relatively new entrant Byju’s — but few of them are nearing profitability and most likely do not see an IPO in their immediate future.

In that context, IndiaMART may set a benchmark for others to follow.

“The fact that we have a homegrown digital commerce business, serving both the urban and smaller cities, and having struggled and been around for so long building a very difficult business and finally going public in the local exchange is a phenomenal story,” Ganesh Rengaswamy, a partner at Quona Capital, told TechCrunch in an interview. “It keeps the story of India tech, to the Western world, going.”

Generally, it is agreed that there are too few IPOs in India and the industry can benefit from momentum and encouragement of high profile and successful public listings.

“There is a firm consensus that in India, markets will prefer only the IPOs of companies that are profitable. And investors in India might not value those companies. Both of these issues are being addressed by IndiaMART,” said Sawhney.

“We need 30 to 40 more IPOs. This will also mean that the stock market here has matured and understands the tech stocks and how it is different from other consumer stocks they usually handle. More tech companies going public would also pave the way for many to explore stock exchanges outside of India.

“Indian market is ready for more tech stocks. We just need to get more companies to go out there,” Sawhney added, although he did predict that it will take a few years before the vast majority of leading startups are ready for the public market.

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The Indian government, for its part, this week announced a number of incentives to uplift the “entrepreneurial spirit” in the nation.

Finance minister Nirmala Sitharaman said the government would ease foreign direct investment rules for certain sectors — including e-commerce, food delivery, grocery — and improve the digital payments ecosystem. Sitharaman, who is the first woman to hold this position in India, said the government would also launch a TV program to help startups connect with venture capitalists.

The path ahead for IndiaMART

IndiaMART has managed to build a sticky business that compels more than 55% of its customers to come back to the platform and make another transaction within 90 days, Agarwal — its CEO — said. With some 3,500 of its 4,000 employees classified as sales executives, the company is aggressive in its pursuit of new customers. Moving forward, that will remain one of its biggest focuses, according to Agarwal.

“Most of our time still goes into educating MSMEs on how to use the internet. That was a challenge 20 years ago and it remains a challenge today,” he told TechCrunch.

In recent years, IndiaMART has begun to expand its suite of offerings to its business customers in a bid to increase the value they get from its platform and thus increase their reliance on its service.

IndiaMART has built a customer relationship management (CRM) tool so that customers need not rely on spreadsheets or other third-party services.

“We will continue to explore more SaaS offerings and look into solving problems in accounting, invoice management and other areas,” said Agarwal.

The firm also recently started to offer payment facilitation between buyers and sellers through a PayPal -like escrow system.

“This will bridge the trust gap between the entities and improve an MSME’s ability to accept all kinds of payment options including the new age offerings.”

There’s an elephant in the room, however.

A bigger challenge that looms for IndiaMART is the growing interest of Amazon and Walmart in the business-to-business space. Several startups including Udaan — which has raised north of $280 million from DST Global and Lightspeed Venture Partners — have risen up in recent years and are increasingly expanding their operations. Agarwal did not seem much worried, however, telling TechCrunch that he believes that his prime competition is more focused on B2C and serving niche audiences. Besides he has $100 million in the bank himself.

Indeed, as Quona Capital’s Rengaswamy astutely noted, competition is not new for IndiaMART — the company has survived and thrived more than two decades of it.

“Alibaba came and gave up,” he noted.

An important — and unanswered question — that follows the successful IPO is how IndiaMART’s stock will fare over the coming months. A glance to the U.S. — where hyped companies like Uber, Lyft and others have seen prices taper off — shows clearly that early demand and sustained stock performance are not one and the same.

Nobody knows at this point, and the added complexity at play is that the concept of a tech IPO is so uncommon in India that there is no definitive answer to it… yet. But IndiaMART’s biggest achievement may be that it sets the pathway that many others will follow.

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