XSTOK, a B2B platform to transact surplus textile goods, has raised Rs 3 crore or US$4.52 lakh from a group of angel investors and early-stage investment firm Oliphans Capital, a company statement said on 18 September. These funds will be utilised to expand its reach to a larger audience.

Founded in January by Sanjiv Khandelwal and Mihir Shah, XSTOK is conceived to serve cross sectional industries, but is currently active in the textile space. The company, the Indian textile industry generates $6 billion worth of surplus every year.

The statement further said that the industry generates surplus worth US$6 billion, which is mostly fragmented and lack cost transparency. Thus, suppliers are unable to realize the right price due to disconnect between buyers and suppliers. XSTOK aims to bring a solution to this problem. It ensures transparent pricing, secure transactions and a large market for the seller. “For buyers it provides access to much larger inventory of surplus, irrespective of their location,” said Shah.

XSTOK charges a listing fee to suppliers and a transaction fee on every successful transaction. Since inception it has carried more than 150 auctions for 130 sellers, including big names like Arvind Mills, Welspun Group, Mafatlal, Bombay Dyeing and Garden Vareli to 4,000 buyers it has registered across India.