With Jio in news on a daily basis, everybody wants to be in the Big Kirana Store revolution either Online, or Omni Channel or the Online Delivery partner where margins are wafer thin and except Top 3 none have the deep pockets to sustain. B2B has been a real big business as is visible by the success of Alibaba which started in China, the Factory for the Globe. With COVID-19 some manufacturing is moving away from China and lets examine the B2B space in India.
IndiaMart a leading online B2B marketplace for business products and services has ~60% market share of the online B2B classifieds space in India (Source: KPMG). It provides a two-way discovery platform for business buyers to discover products and services FREE of Cost, and contact the sellers of such business products and services. The platform generates revenue from Subscriptions, Listings, Lead generation and other related services provided to Suppliers / Sellers. Since the concept of B2B has been profitable as witnessed here and the world’s largest platform Alibaba, entrepreneurs decided to focus on high niche areas and begin competing in the B2B space. We’ll have a look at who have emerged as competitors to IndiaMart.
Udaan End-to-end B2B eCommerce model facilitating discovery, payment and delivery with focus on verticals are apparel, electronics & FMCG. Udaan also offers a credit line to provide working capital to buyers and sellers on its platform. Earns from commission and Interest on lending. Platform is backed by well known VC funds DST Global, Tencent, Lightspeed and Hillhouse.
Moglix E-commerce marketplace facilitating discovery with focus on Industrial products category. Earns revenue by way of commission. Backed by Ratan Tata, Tiger Global, Sequoia and Kalyan Krishnamurthy.
Power2SME Was born out of the concept of Bulk Buying to drive efficiencies in purchases. This platform sources raw materials for SMEs at economical price points by pooling their orders and buying directly from the manufacturer. Acts as a facilitator for financing, by bringing together SMEs and financial institutes on a common platform. Provides bill financing facility. Backed by Accel, Inventus, Kalaari, Nandan Nilekani and IFC.
IndustryBuying Focuses on the industrial and business products category. Revenues are by means of commission. The platform is funded by SAIF, Kalaari and BlackSoil.