Calcutta, Sept. 2: MatexNet India, a business-to-business online auction company, expects to have transactions worth Rs 2,500 crore by the end of this year.

The Bangalore-based company started operations in 1998 with an initial capital of Rs 20 lakh. In two years, the value of transactions on its site is expected to touch Rs 4,500 crore.

MatexNet has two main functions — forward auction, comprising excess inventory liquidation, and reverse auction or online procurement of capital goods for companies. The latter is also called capital purchase.

“The e-auction market will provide a growth momentum in the coming years. As more companies are asking for a structured platform to auction commodities, the market, which is growing at a rate of 30 to 40 per cent, will become more organised,” said S. Jaganni Vasan, managing director of MatexNet.

The excess inventory market is estimated to be between Rs 60,000 and Rs 70,000 crore, which excludes non-performing assets (NPA) of banks.

“If the value of the auction of NPAs of nationalised banks is included, the market will be even bigger. We have tied up with nine banks to tap the NPA market,” Vasan added. Banks, such as the SBI, Bank of India, Punjab & Sind Bank, Exim Bank and the State Bank of Hyderabad, will also co-ordinate with debt recovery tribunals on legal issues.

The company is planning $4 million to $5 million worth of venture capital funding for its infrastructure needs. It is weighing the option of an initial public offering in one-and-a-half years as well.

The company has also launched an online platform for pre-owned cars. It plans to source the cars from BPOs and other services companies that get their purchased or hired vehicles replaced after five years.

“At least 100,000 vehicles catering to the IT industry are five years old. Bangalore, Chennai, Gurgaon, Mumbai, Pune and Calcutta have a huge number of cars used in the IT segment. Bangalore’s IT industry alone has 60,000 to 70,000 vehicles,” Vasan said.