15 Million Kirana Stores in India Embrace eB2B Transformation
Over 15 million kirana stores across India are embracing digital innovation through eB2B (ecommerce-led business-to-business) platforms, transforming the sector with rapid growth and enhanced operational efficiency, according to a report by Redseer Strategy Consultants released.
Historically reliant on fragmented, traditional trade-distribution models, kirana stores are now leveraging digital solutions for procurement, formal credit access, and superior customer service. This shift is particularly evident in remote and rural regions, where digital adoption is helping stores streamline operations and better meet consumer demands.
India’s private consumption is experiencing robust growth, with a compound annual growth rate (CAGR) of 10.4 percent between FY18 and FY23. The retail market is projected to expand significantly, reaching Rs 116 lakh crore to Rs 125 lakh crore by 2028, driven by rising incomes and shifting consumer preferences.
Redseer’s report highlights that eB2B platforms are playing a key role in reshaping India’s retail landscape. "The Indian B2B kirana market is on the cusp of a remarkable transformation as digital platforms revolutionise traditional trade practices", said Anil Kumar, Founder and CEO of Redseer Strategy Consultants. He added that digital solutions are not only improving supply chains but also providing stores with unprecedented access to products and financial services, driving long-term growth and sustainability.
One of the major benefits of eB2B platforms is the access to formal financing options, allowing kirana stores to move away from informal credit arrangements. This newfound access to formal credit enables retailers to expand their product range, improve cash flow management, and enhance overall business operations.
The report also highlighted udaan, India’s leading eB2B platform, which has solidified its position as the preferred partner for kirana stores in cities like Bengaluru and Hyderabad. Udaan has been outpacing its competitors by offering comprehensive services and addressing the specific needs of these small retailers.
While traditional retail channels continue to dominate India’s essentials market, the report notes that digital B2B solutions are expected to capture a larger market share in the coming years as more kirana stores adopt these platforms.
