Get All Access for $5/mo

Indian B2B Marketplaces To Drive $125 Billion By 2027: Avendus Capital Study According to the report, these marketplaces have the potential to become multi-billion-dollar vertical outcomes across categories, addressing the huge whitespaces in the value chain with no large sophisticated traditional incumbents or horizontal ecosystems, unlike the US and China

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Pexels

Avendus Capital, India's largest Investment Banking franchise, launched a report that takes a deep dive into India's B2B e-commerce sector, which stated that Indian B2B marketplaces are expected to drive the next leg of tech-led growth, growing at a CAGR of 45% over the next five years and addressing a $125 billion market by 2027. These marketplaces have the potential to become multi-billion-dollar vertical outcomes across categories, addressing the huge whitespaces in the value chain with no large sophisticated traditional incumbents or horizontal ecosystems, unlike the US and China.

"India is the 7th largest manufacturing hub and 5th largest retail distribution market globally, presenting a $2 trillion+ B2B opportunity that is yet to see meaningful disruption with <1% tech penetration. Traditional supply chains still operate in a highly inefficient, fragmented, and localized manner through multiple intermediaries. We expect B2B marketplaces to drive exceptional growth, driving tangible benefits for all stakeholders across the value-chain and potentially benefiting 10mn+ SMEs. We anticipate strong value creation in the sector leading to 6-7 IPOs over the next five years," said Varun Gupta, managing director, Digital and Technology Investment Banking, Avendus Capital.

As per the report, global supply chain de-risking, China+1 policy and government PLI schemes are pushing the expansion of domestic and export opportunities. It also added that B2B marketplaces have demonstrated strong capital efficiency as the category leaders have demonstrated profitable growth.

"B2B marketplaces saw a baseline shift in growth post COVID with structural tailwinds supporting the tech disruption. Since then, the market has grown over 5 times with 2/3rd of the total funding coming in and creation of nearly all unicorns in the segment. The models have evolved from pure-play discovery to full-stack integrated marketplaces with category leaders displaying sustainable economics at scale. Going forward, we expect to see continued private interest along with the public market debut of leading players," said Ekta, vice-president, Digital and Technology Investment Banking, Avendus Capital.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
News and Trends

"45% of All Ongoing Hydropower Projects in India are Ours": Patel Engineering

Patel Engineering reported a turnover of INR 4,400 crore in the last fiscal year, with a projected 10 per cent growth for the current year.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

News and Trends

Broadcom Stock Soars on AI Growth Outlook

Broadcom's next-generation AI chips, built with advanced 3-nanometer technology, are set to debut in the spring

Science & Technology

5 Rule-Bending AI Hacks to Make Your Mornings More Productive and Profitable

By 2025, AI will transform productivity by streamlining workflows and cutting costs. Major companies like Microsoft, Google, and OpenAI are leading the way, advancing AI into "Phase 3," where tools act as digital assistants. Discover 5 AI hacks to boost efficiency and redefine your daily routine.

Leadership

Should I Stay or Should I Go? 8 Key Points to Navigate the Founder's Dilemma

Here are eight key signs that help founders determine whether to persevere or let go.