The Future to Procurement is Here!

In the early 90s, while working on a project in the US,Mr. Jagan, the founder of Matex, made a significant discovery that would later inspire the creation of Matex. He found that a leading automobile manufacturing company was selling brand new items at zero value from one factory while another a leading automobile manufacturing company factory was buying the same items at market value. This was happening because their databases were not connected. The realization that connecting databases within a company could unlock substantial value was the spark that ignited the idea behind Matex.

Upon returning to India, Mr. Jagan discussed this idea with his brother Yogeshwaran. They both agreed that connecting databases between different companies could also yield significant benefits. However, creating a common database for multiple companies posed a challenge. Driven by this idea, they started to develop a database company before the internet became prevalent. Mr. Jagan's friends liked the idea and supported him to start the business. It was called JNN Matex and was started in 1995. This company aimed to list material items, their requirements, and their availability, facilitating matchmaking between buyers and sellers. Initially, Matex was a database company focusing on listing and connecting items.

The concept evolved to include price discovery and material validation. The founders emphasized transparency and security in transactions, ensuring that clients were not cheated and were fully aware of the transaction details. As the business grew, Matex focused on connecting multiple companies' databases through their platform. They started identifying new buyers, validating them, and ensuring transactions were conducted safely. They decided to charge a transaction fee rather than buying and selling items themselves to avoid the risks associated with trading.

With the advent of the internet, Matex transitioned from physical auctions to internet-driven auctions. They created India’s first bulletin board service for electronic buying and selling before the internet era. This service allowed companies to upload, download, and view files, and send messages through a telephone line connected to a modem. In 1997, Sridhar joined Matex as the IT head and played a crucial role in developing their internet auction model. All software and modules were created in-house, making Matex a pioneer in the field. The founders coined the name "Material Stock Exchange" for their venture, which was later shortened to "Matex." In 1999, recognizing the potential of the internet, Matex received venture capital funding from an angel investor based in the US. This investment marked a significant milestone for Matex, enabling them to expand their operations.

Despite the internet boom and the influx of money into tech companies, Matex remained focused on creating value through transparent and secure transactions. Matex continued to innovate, introducing e-tender mechanisms and reverse auctions for procurement. This innovation was first adopted by Bharat Electronics Limited and was successfully used for many years. Despite financial challenges and the need to raise additional capital, Matex persevered, continuously evolving and expanding its services. Today, Matex stands as a testament to the vision and perseverance of its founders, who transformed a simple idea of connecting databases into a leading platform for material exchange and auctions. Their commitment to transparency, security, and innovation continues to drive Matex’s success.