6 Business-to-Business (B2B) Online Marketplaces in India worth exploring
Business-to-business (B2B) ecommerce market is gradually maturing across the world, whereas in India it is still at the nascent stage. Experts have predicted that India’s B2B industry will be worth Rs 45 lakh crore by 2020. And according to SME finance companies, this online industry is six times bigger than business-to-consumer (B2C) in India.
India’s yet-to-mature B2B ecommerce industry with large untapped potential of growth presents a great opportunity to companies who want to enter this market. From a handful of companies in the past (Alibaba, IndiaMart, Trade India), now there are all size of startups that cater to all size of buyers, be it a small online marketplace reseller to big chain of hotels.
This has made the job of procuring raw materials in bulk quantity and at bulk prices much easier for sellers and resellers.
Do you want to start your B2B online buying journey? Do you want to know the details about such companies in India? Please read on.
Amazon, the US-based ecommerce giant started its B2B online platform in 2015 to fulfill the demand of business customers who were looking for the seamless ‘Amazon buying experience’ while procuring supplies for their work.
Currently available in two cities, Bangalore and Mangalore with plans to expand in other cities, you can become a part of this members-only site if you have a valid business license.
Payments can be made through NEFT/RTGS transfer, Credit/Debit Card and Net-banking and cash-on-delivery service is available for Bangalore-based buyers. The marketplace also offers free credit service (up to 48 days) in association with HDFC Bank and ICICI Bank.
Its main USPs are the brand name ‘Amazon’ and ease of buying.
Primary Categories: Health & Personal Care, Home Medical Supplies, Beauty, Food & Beverages, Cleaning & Laundry, Mobile & Accessories, Office & IT Peripherals, Home, Kitchen & Dining products at wholesale prices and in bulk quantities.
Founded by R. Narayanan in 2012, Power2SME calls itself the first ‘Buying Club’ for SMEs. The company was formed with an aim to empower SMEs by making it easy & affordable for them to procure raw materials.
In 2014, the company raised Rs. 42 crores in Series C round of funding from Accel Partners, Inventus Capital and Kalaari Capital. In January 2016, Chairman of UIDAI Nandan Nilekani along with the existing three investors poured more capital into Power2SME during Series D round of funding.
In April 2016, the B2B firm’s revenue was $10 million and the average order value was Rs.25 lakh! This is why the company is confident about breaking even by next year.
Register for free or fill up the Request for Quote (RFQ) form with your business requirement. The company’s sales representative then gets in touch with buyers with proposed rates. SMEs can avail loan facility on request.
Its main USPs are strong investors and high-quality suppliers like LG, Essar, and Indian Oil.
Primary Categories: Abrasives, Adhesives, Safety, Power tools, Plumbing, Handtools, Power Transmission, Security, Machining, Office Supplies, Motors & Pumps, Medical Supplies, Electricals, Hardware and a lot more.
Established in 2013 by Swati Gupta and Rahul Gupta, Industry Buying is a B2B marketplace for industrial good and supplies. Regular buyers are offered credit and the purchasing process is quite straightforward.
The startup has grown tremendously with its seller base increasing from 1000 in 2015 to 4,500 in May 2016. Buyer base increased from 40 enterprises and 25,000 SMEs in 2015 to 150 enterprises and 75,000 SMEs in May 2016. Customer visits too multiplied by four times.
The company has raised Rs 87 crores from investors such as Kalaari Capital, Saif Partners and BEENext so far.
Its main USPs are impressive growth & traction and innovative product solutions like ProcMan.
Primary Categories: Lab supplies, LED & lights, Electronics & Robotics, Cleaning, Dimension Measurement, Industrial Automation, Furniture & Hospitality, Lubricants & Oils, Powder & Coatings, and Welding are just 10 of the 40+ categories.
This B2B marketplace focuses on bulk buying and selling of ‘Packaging’ materials. Started by Aniket Deb, Sachin Agrawal and Ankit Tomar (IIT Bombay and IIT Delhi graduates) in 2014, the startup found an investor in Accel Partners.
It initially started as a platform for plastic and chemical product categories, but as of now, there are only packaging products listed on the website.
Last heard news about Bizongo’s funding was in October 2015, when Accel invested an undisclosed amount in the startup.
Its main USPs are knowledgeable team and ability to adapt with changing business environment.
Primary Categories: Food packaging, Bottles, rigid and protective packaging, Crates, Pallets, Drums, Dustbins, Packaging Bags & Boxes, Flexible films, Pouches and Bubblewraps.
It’s an IndiaMart subsidiary launched in June 2014 for SMEs. With more than 1,000,000+ products from over 28 categories, 7000 sellers, and 8000 brands, Tolexo’s product portfolio, seller & buyer base is probably the widest and biggest out of all players.
The B2B marketplace offers last mile deliveries with guaranteed dispatch within 24 hours, which is a great service for business clients.
IndiaMart had invested Rs. 100 crores in Tolexo in FY15–16.
Its main USP is its association with IndiaMart, which is one of the biggest players in the Indian B2B industry.
Primary Categories: Safety, Plumbing, Adhesives, Fasteners, Electricals, Abrasives, Car & Bike Accessories, Lubrication, Handtools, Hardware, Office Supplies, Lab supplies, and much more.
The newest one on the block, Just By Live is already creating waves by multiplying its network and raising funds in less than a year. The startup is an app-based e-distributor that connects traditional manufacturers to retailers. Thus, by eliminating regular distributors, manufacturers get better margins and retailers get a wide range of products at one glance.
The firm raised around Rs 136 crore ($20 million) in Series A funding from Alpha Capital in January 2016. Just by Live aims to restructure the age-old retail distribution system by modernizing it to fit the current fast-pace ecommerce industry.
Buyers/retailers can access the listed products through Just Buy Live’s app, talk to brand teams and get order delivered at doorstep after downloading the app and registering their business. Buyers can also make use of credit facility ‘Udhaar by Just Pay’ by uploading required documents. If you are a brand owner, then write to email@example.com to list your label on the B2B platform.
Its main USPs are unique concept and focussed approach backed by thorough research and experienced team.
Primary Categories: Grocery, Ayurveda, Dairy, Water, Chocolates & Sweets, Home care, Personal care, Fashion & Beauty, Auto, Appliances and many more.
The B2B ecommerce space comes with its own set of complex challenges that has forced startups like Omnikart to shut shop.
But such startups with the help of technology, new-age thinking, compassion and ecommerce have empowered SMEs to a great extent. Many business buyers have stopped haggling with local distributors and now prefer to buy from B2B ecommerce portals like the ones mentioned above.
Faster delivery, wide range of products, competitive prices, organised buying process, professional service, secure payment process, legal credit facility, low commission rates and buying assistance are few of the many reasons why industry buyers rely on such companies.
Investors too are keen on investing/buying stake in B2B startups as the business model doesn’t allow or demand to spend funds on mindless-discounting, year-round deals, marketing & promotional activities and heavy returns like it is the case in B2C ecommerce space.
Sellers, have you tried any of these B2B marketplaces? Do you buy or sell from any such platform? Any feedback or recommendations you would like to share? Please do leave your valuable comments and help the seller community.
Originally published at indianonlineseller.com.