Tim Goodman to give wings to Diamond auctioning business in India

Fervent Indian Businessman and Director of Sua Explosives & Accessories Private Limited, Abhishek Poddar has made a huge investment of $200,000 in an Australian venture owned by Tim Goodman, which auctions fine art pieces and diamonds globally.

An Economic Times report suggests that to simplify the auction process and also to cut the cost of auctions, the Fine Art Bourse (F.A.B.) will challenge the current business models of giants like Sotheby's and Christie's.

With a global approach, the project has been termed as an ambitious and a bold one. As per Abhishek Poddar’s account, the unique selling point of this project is the financial model.

According to Goodman, the founder of the auction company, Poddar owned 2.5% stake in the company and was also allotted some bonus shares. "As he was an early investor, he received bonus shares and has now got a total of 400,000 shares or 5% equity in the startup," Goodman said.

Poddar, who is a Bangalore-based businessman and owns multiple businesses including mining explosives, tea trading, and also an organization that is dedicated to increase visibility of photography as an art. In his newly started venture, Poddar will sit on the advisory board.

There are other distinguished Indian nationals and expats on the advisory board as well who are being issued a small number of shares. Other specialists who have been roped in include names like Aqdas Tatli, Niyatee Shinde and Rekha Sodhi.

The man with decades of experience in auctioning and former owner of Sotheby’s Australia and some other auction houses, Tim Goodman is also in talks with some other investors, including Indians to raise funds for expansion. "We have already closed the first round of funding at $3 million and are looking to raise another $5 million," he said, adding the money will be used to expand the global network and for the launch of online diamonds business later this year.

"Considering the demand, we expect the diamond business to be huge in India," he added. Describing the business model of FAB, he said, "We will charge a buyer's commission of just 5%, compared to the 25% fee commanded by most of the traditionalists."

According to the entrepreneur, the traditional auction business model is no longer sustainable, which is why he sold all his auction businesses, including Sotheby's Australia.

"In 2011, I sold my stakes in all the auction houses as I was disillusioned. The ratio between the cost and income for auction houses has been changing consistently over the last 30 years in favor of costs," said Goodman.
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