India's B2B Marketplaces Poised to Reach $200B Gross Merchandise Value by 2030
According to a report by Bessemer Venture Partners, the next phase of growth in India’s digital economy will be driven by business-to-business (B2B) marketplaces. Online-first, tech-enabled B2B platforms are expected to create a market opportunity worth $200 billion by 2030, a significant increase from the $20 billion opportunity in 2022.
Despite the projected growth, online B2B Gross Merchandise Value (GMV) will represent only 5% of the overall B2B sales in India by 2030, compared to the current market share of 1%. In contrast, other regions such as China, the UK, and the US see a much higher share of B2B ecommerce, accounting for 25%, 20%, and 18% of overall sales, respectively.
The report identifies three key opportunities in the B2B marketplace space, focusing on product, services, and infrastructure marketplaces. Anant Vidur Puri, Partner at Bessemer Venture Partners, highlights the growing significance of services marketplaces, which command higher gross margins of 30% to 40% compared to product marketplaces’ average of 15% gross margin. Success in the services sector will be determined by the ability of marketplaces to foster collaboration between businesses, leading to better retention, margins, and revenue.
Moreover, the growth of online B2B transactions will be influenced by factors such as the accessibility of online payments and the availability of government-backed ecommerce initiatives like ONDC (Open Network for Digital Commerce) and OCEN (Open Credit Enablement Network) for credit rails. The report predicts a promising future for India’s B2B marketplaces, positioning them as a driving force behind the country’s expanding digital economy.
