India’s ecommerce market is growing fast, but business-to-business digital commerce is growing faster.
By 2027, the B2B ecommerce market is predicted to top $350 billion annually. That number is among the metrics in “The Rise of Digital Bazaars in India,” a report written by Bain & Co. and Accel.
Of that total, the B2B marketplace segment is expected to be the fastest growing, according to Bain and Accel. “The gross merchandising volume (GMV) of B2B marketplaces is expected to grow 5X its current size to reach $55 billion by 2027, followed closely by online food delivery, which will almost triple in size to reach nearly $22 billion,” the report says.
“With tailwinds from strong macro factors and continued investor support, Indian marketplaces are a mega opportunity that will have a lasting impact on the India growth story in the next five years,” the report says. “Marketplaces are slated to collectively achieve more than $350 billion in GMV, create $400 billion to $500 billion in enterprise value, reach 400 million to 450 million online shoppers, enable more than 15 million micro, small and medium enterprises (MSMEs) to grow their businesses online, and create 7 million jobs by 2027.”
Other B2B marketplace highlights include:
- Global cross-border opportunity: A large addressable market (approximately $1 trillion exports by 2027) and favorable government initiatives present a tremendous opportunity for cross-border marketplace players.
- Around 20 marketplaces have achieved more than $1 billion in GMV.
- Marketplaces have also seen significant traction with investors. 2021 was a landmark year for marketplaces, as funding reached $16 billion (growing four times compared to 2018 funding), more than 135 companies raised funding, and more than 45 companies drew Series C+ capital.