(The Weekend Insight) - From Sadar Bazaar to SaaS: The Great Indian B2B Disruption

In today’s deep-dive, we will explore how B2B marketplaces are becoming the backbone of India’s digital economy. Unlike flashy B2C platforms, these digital ecosystems quietly connect manufacturers, wholesalers, and retailers to streamline procurement, logistics, and credit. As India pushes toward its $1 trillion digital economy goal by 2030, B2B platforms are transforming traditional supply chains across sectors like agriculture, construction, and healthcare. Giants like IndiaMART and Udaan, along with newer players like Infra.Market and OfBusiness, are enabling millions of MSMEs to scale efficiently. These platforms aren’t just intermediaries—they're full-stack engines driving India’s industrial and export ambitions.

Definition of B2B Marketplaces

B2B marketplaces are digital platforms that connect businesses—suppliers, manufacturers, wholesalers, and buyers—to facilitate seamless transactions. Unlike B2C platforms, they cater to bulk orders, recurring purchases, and complex supply chains, often integrating logistics, payments, and credit. In India, they’re digitizing a traditionally fragmented with online B2B market expected to reach $200 billion by 2030, per a MEA report. These platforms range from broad, multi-category hubs to niche, sector-specific solutions, all aiming to cut inefficiencies and boost transparency.

How They Differ from B2C Platforms

Let’s explore the key distinctions between B2B (Business-to-Business) Marketplaces and B2C (Business-to-Consumer) Platforms:

Examples of D2C companies include Flipkart, Nykaa, Myntra, Urban Company and similar companies that sell various products directly to their consumers through their websites and marketplaces or offline retail stores.

Importance of B2B Marketplaces in India’s Digital Economy

With MSMEs contributing 30% to India’s GDP and 45% to industrial output, B2B marketplaces are vital cogs in the digital economy wheel. They bridge gaps in procurement, reduce costs, and formalize trade, aligning with India’s $1 trillion digital economy goal by 2030. They’re not just tools—they’re catalysts for growth in a nation where over 970 million people are online.

As B2B marketplaces emerge as critical enablers of economic growth, here’s why they are indispensable to India’s digital growth story:

1. Digitizing Traditional Supply Chains
   India’s supply chain ecosystem has long been plagued by inefficiencies—fragmented sourcing, lack of transparency, and dependency on middlemen. B2B marketplaces like Udaan, IndiaMART, and OfBusiness are disrupting this space by connecting buyers and sellers directly, offering inventory management and enabling seamless logistics and payments through integrated solutions.

2. Empowering MSMEs with Financial & Operational Support
   B2B marketplaces are now offering Buy-now-pay-later (BNPL) options (e.g., Udaan Credit), invoice financing & supply chain loans (e.g., OfBusiness’s Credit) and digital payment gateways to streamline transactions.

3. Driving Hyperlocal & Cross-Border Trade
   B2B marketplaces are not just connecting businesses within India but also facilitating global trade. Platforms like Exportify and Tradeling enable Indian manufacturers to reach international buyers, boosting exports.

4. Accelerating Industry-Specific Digitization
   From agriculture (DeHaat, Ninjacart) to construction (Infra.Market), sector-specific B2B platforms are optimizing niche supply chains. These marketplaces provide quality assurance for bulk purchases and end-to-end fulfillment services, from sourcing to delivery.

When talking about B2B in India, the following companies lead this market:

• IndiaMART: Launched in 1996, IndiaMART is India’s oldest B2B marketplace, connecting 8 million suppliers with 206 million buyers across 75 million products. It’s the go-to for SMEs seeking everything from machinery to textiles.

• Udaan: Founded in 2016, Udaan targets small retailers and wholesalers, offering a mobile-first platform with logistics and credit. It’s scaled to 3 million users, hitting unicorn status in just 26 months.

• Moglix: This industrial goods platform serves 500,000+ SMEs, cutting procurement costs by 15-20% through bulk sourcing and AI-driven insights.

• Ninjacart: Linking farmers to retailers, Ninjacart moves 1,400 tons of produce daily, slashing middlemen costs by 25% and boosting urban supply chains.

The Evolution of B2B Marketplaces in India

India’s B2B story started in the late 1990s when internet penetration was under 1%. Early platforms digitized trade directories and supplier networks, targeting exporters and SMEs. Offline markets like Delhi’s Sadar Bazaar dominated, but pioneers laid the groundwork for a digital shift. By 2010, online B2B trade was a mere $1 billion—today, it’s 60 times that, per Statista.

Early Players & Traditional Wholesale to Online Shift

Back in the late '90s and early 2000s, businesses looking to buy or sell in bulk would likely be haggling in a physical market, building relationships over endless cups of chai. Then came the internet, and with it, the first wave of digital disruption.

IndiaMART, founded in 1996 started as an online directory to help Indian manufacturers connect with global buyers and soon turned into a full-fledged marketplace. Since 1996, TradeIndia has connected 5 million+ users, focusing on exporters and SMEs with a catalog spanning 2 million products.

Another pioneer was Power2SME, launched in 2012, it helps SMEs procure raw materials like steel and chemicals, serving 50,000+ businesses with $200 million in annual financing.

The Rise of Digital-First Marketplaces in the 2010s

Fast forward to the 2010s—smartphones exploded, internet access became cheaper, and businesses were ready for something smarter than just online listings. This was the era of digital-first B2B marketplaces, built to solve real supply chain headaches.

Take Udaan (2016), for example. It was designed specifically for small traders, wholesalers, and retailers, cutting out middlemen and making bulk buying as easy as ordering groceries online. Then there was Moglix (2015), which took on the fragmented world of industrial supplies, offering everything from nuts and bolts to heavy machinery in one place.

Current Landscape: Scale and Scope

Today, India’s B2B marketplace ecosystem is buzzing with platforms that are transforming the industry. Infra.Market, for instance, specializes in construction materials, providing a centralized platform for procurement, which enhances efficiency and cost-effectiveness in the construction sector.

Bizongo has carved a niche in packaging solutions, offering businesses a streamlined process to source customized packaging. Did packaging for brands like ITC, managing $1 billion in transactions and serving 300+ enterprises.

OfBusiness, established in 2015, focuses on raw material procurement and credit facilitation for SMEs, integrating commerce and finance to empower businesses. The platform's success is underscored by its plans for an initial public offering (IPO) valued between $750 million and $1 billion by the second half of 2025.

Zetwerk, founded in 2018, operates in the manufacturing services domain, connecting companies with manufacturing partners for custom products and machine parts, reaching a $2.8 billion valuation by 2024 with $600 million in orders.

Key Growth Drivers of B2B in India

Indian B2B marketplaces are witnessing a boom, facilitated by several factors like technological advancements, ease of payments, government policies, digital-first solutions and robust infrastructure. In 2022, B2B e-commerce accounted for approximately 1% of the overall B2B market. This share is projected to rise to nearly 5% by 2030, with the online B2B market expected to reach $200 billion. Additionally, India's manufacturing sector is on track to reach $1 trillion by 2025-26, further fueling the expansion of B2B marketplaces.

Let’s now dive into the factors leading the momentum in India’s dynamic B2B landscape:

1. Digital Adoption

The country’s tech adoption has largely been driven by the rise of consumer internet usage— with over 950 million Indians now online, digital solutions have become more accessible to micro, small, and medium enterprises (MSMEs).

As of 2022, India is home to over 60 million MSMEs, and two out of three have integrated technology into their operations. While only 10% of these currently engage in online buying and selling, this number is set to grow significantly. By 2026, nearly 25% (15 million) MSMEs are expected to transact on online B2B marketplaces, unlocking new opportunities for efficiency, discovery, and cost savings. India’s online payment transaction value is projected to hit $208 billion by 2025, with players like Razorpay, and Juspay driving innovation.

Additionally, initiatives like the Open Network for Digital Commerce (ONDC) are enhancing B2B marketplaces by enabling seamless integration with logistics providers, payment gateways, and financial institutions, improving efficiency and regulatory compliance. Complementing this, the Open Credit Enablement Network (OCEN) is reshaping B2B lending by simplifying credit access, fostering transparency, and enabling personalized loan offerings, ultimately strengthening the financial ecosystem for businesses.

2. Regulatory Changes

• Goods and Services Tax (GST): Introduced in 2017, GST unified India's complex tax structure, eliminating the need for multiple state-specific tax registrations. This simplification reduced administrative burdens and compliance costs, facilitating smoother inter-state business operations. Additionally, GST streamlined the process for businesses to claim input tax credits, leveling the playing field for Micro, Small, and Medium Enterprises (MSMEs).

• eWay Bill System: The eWay Bill, an electronic document mandatory for inter-state goods movement, has enhanced the tracking and management of shipments. Its implementation has led to reduced delivery times and increased logistical efficiency, encouraging greater participation from sellers and buyers on B2B platforms. Logistics companies like Shiprocket, Delhivery, Shadowfax, and Freight Tiger have been instrumental in this transformation.

• Trade Receivables Discounting System (TReDS): Launched by the Reserve Bank of India in 2017, TReDS is an online platform that enables MSMEs to auction their trade receivables at competitive rates. This system has improved cash flow management for MSMEs, reduced the risk of payment defaults, and fostered trust between buyers and sellers on B2B marketplaces.

• Production Linked Incentive (PLI) Scheme: The PLI scheme incentivizes domestic manufacturing across various sectors, indirectly benefiting B2B marketplaces by expanding the supplier base, enhancing product quality, and strengthening supply chains. This initiative aligns with broader government programs like Make in India, Digital India, and Startup India, which promote digital adoption and competitiveness among MSMEs.

These regulatory measures have collectively created a conducive environment for the expansion and efficiency of B2B marketplaces in India.

3. India’s Export Boom and B2B Marketplaces

India is rapidly emerging as a global export hub, benefiting from the China+1 strategy as companies seek to diversify supply chains. An estimated 15% of global demand is expected to shift to India, driven by its rich natural resources, cost-effective labor, and transparent regulatory framework. To accelerate this momentum, India is actively pursuing free trade agreements, aiming for a $2 trillion export target by 2030. Beyond manufacturing, India's expanding tech talent pool is fueling the rise of high-value SaaS exports, positioning the country as a leader in global digital solutions. Simultaneously, a new generation of digitally adept entrepreneurs is transforming MSMEs by leveraging B2B marketplaces for scalability. As these platforms gain traction, they are set to play a pivotal role in India’s journey towards a $1 trillion digital economy, unlocking new avenues for growth and innovation.

Market Segmentation: Understanding the Sectors

India’s B2B marketplaces cater to a wide array of industries. Here’s a deep dive into key sectors and the platforms transforming them:

1. Industrial Goods, Raw Materials and Construction Materials

Industrial procurement, traditionally reliant on fragmented offline supply chains, has been revolutionized by B2B marketplaces offering raw materials like steel, cement, and chemicals. Infra.Market provides cement, ready-mix concrete, steel, construction chemicals, and more. It optimizes purchasing decisions and ensures cost efficiency. The company has rapidly expanded, crossing a billion-dollar revenue mark, backed by investors like Accel and Tiger Global.

Another major player, OfBusiness, provides procurement solutions and offers products such as steel, TMT, metals, chemicals, polymers, textiles, cement, and building materials. Backed by Tiger Global and SoftBank Vision Fund, this giant did $2.36 billion in revenue in FY24.

2. Agri & Farm Input Supply Chains

India’s agrarian economy has seen a digital transformation with the rise of B2B marketplaces connecting farmers with suppliers. DeHaat provides access to quality seeds, fertilizers, pesticides, and farm advisory services while also linking farmers to buyers. The platform uses AI-powered recommendations to improve productivity and profitability for farmers, serving over 1.5 million farmers across India.

Other key players like Agribazaar and Ninjacart focus on streamlining the supply chain by reducing the dependency on middlemen, ensuring better prices for farmers and consistent quality for buyers.

3. Fashion & Apparel Sourcing

India’s textile industry, a global leader in apparel manufacturing, has embraced B2B e-commerce for efficient sourcing. Shop101, an online reseller platform, helps small retailers and entrepreneurs source apparel directly from manufacturers. It enables small businesses to scale without the burden of inventory management.

Another notable player, Zilingo, was a key marketplace for fashion, home improvements, electronics and beauty, connecting Indian manufacturers with global buyers.

4. Food and Restaurant Supply

The F&B industry depends on a reliable supply of raw materials, packaging, and equipment. Jumbotail, a leading B2B platform, streamlines food and grocery procurement. The platform offers a comprehensive suite of services, including supply chain logistics, a mobile ordering app, point-of-sale integration, and credit solutions for small shop owners lacking traditional financing options, enhancing operational efficiency.

5. Electronics and Mobile Accessories

India is emerging as a global hub for electronics manufacturing and smartphone production. B2B marketplaces facilitate bulk sourcing and distribution. Udaan has a dedicated vertical for mobile accessories and electronics, helping small retailers and wholesalers access a wide range of products with flexible financing options.

6. Pharma & Healthcare Distribution

The pharmaceutical and healthcare sector requires an efficient supply chain to ensure timely availability of medicines, APIs, and medical equipment. Biddano, a B2B healthcare marketplace, connects pharmacies with distributors, simplifying and managing supply chain gaps between distributors and chemists.

Other major players like Pharmarack and Retailio are digitizing pharma supply chains, improving efficiency and transparency in drug distribution.

Business Models of B2B Marketplaces

B2B marketplaces operate on different models, tailored to different business needs functionalities. Let’s take a closer look at key business models shaping these marketplaces:

1. Pure Marketplace vs Inventory-led

In the pure marketplace model, the platform acts as an intermediary, connecting buyers with third-party sellers without owning inventory.

Examples: Shopclues and eBay.

The inventory-led model involves companies owning and managing stock, ensuring better quality control and faster deliveries.

Examples: Yepme and Jabong.

2. Credit as a Service: Embedded Financing in B2B

Access to credit has long been a challenge for small businesses in India. Embedded financing within B2B marketplaces offers in-platform credit solutions tailored to buyers and suppliers. By integrating fintech solutions, these platforms enable instant working capital loans, BNPL (Buy Now, Pay Later) options, and invoice financing, reducing reliance on traditional banking systems.

Examples:

• OfBusiness provide credit-backed procurement for SMEs.

• Jumbotail extends working capital loans to kirana stores, helping them scale operations.

3. Full Stack Model: Logistics + Financing + Tech

The full-stack model in B2B marketplaces integrates logistics, financing, and technology to provide end-to-end solutions, ensuring seamless transactions for businesses. Unlike traditional platforms that merely connect buyers and sellers, full-stack marketplaces actively manage procurement, supply chain, and credit to enhance efficiency.

Examples:

• Infra.Market streamlines the procurement of construction materials by offering just-in-time inventory, embedded financing, and tech-driven demand forecasting.

4. Product Marketplaces

These platforms dominate, handling 60% of B2B e-commerce GMV ($36 billion in 2025, Statista). They offer physical goods—industrial supplies, groceries, etc.—with bulk pricing and logistics. Blogs like VCCircle call them “the backbone of B2B growth.”

Examples:

• Industrybuying: Offers 1 million+ SKUs for SMEs, from tools to electronics.

• Jumbotail: Serves kirana wholesalers with 10,000+ daily orders, targeting $500 million GMV by 2026.

5. Service Marketplaces

Smaller but nimble, these platforms connect businesses to freelancers or specialized services, growing at 30% CAGR (RedSeer). Reddit users value their flexibility for startups needing quick solutions.

Examples:

• Pepper Content: Links 2,500+ clients to freelance writers, delivering 100,000+ projects.

• Expertrons: Places 50,000+ candidates for companies via career services.

6. Marketplace Infrastructure Providers

These enablers—logistics, payments, tech—support marketplaces, with a $5 billion potential by 2027. X Chatter praises their role in “making B2B seamless.”

Examples:

• Shiprocket: Powers logistics for 100,000+ sellers, cutting costs by 20%.

• Saveo: Streamlines pharma supply chains for 5,000+ pharmacies.

Why B2B Marketplaces Matter

B2B marketplaces are playing a transformative role in India's digital economy, addressing inefficiencies, empowering small businesses, and driving economic growth. Here’s how they are reshaping key sectors:

Digitizing India's Supply Chains

B2B marketplaces streamline procurement and distribution by eliminating inefficiencies caused by multiple middlemen. Platforms like ElasticRun enable logistics for rural Kirana stores, empowering small, family-owned stores and optimized inventory management. Similarly, Ninjacart connects farmers directly with retailers, reducing wastage and ensuring fair pricing.

Empowering MSMEs and SMEs

MSMEs employ 120 million people (MSME Ministry). B2B platforms boost their margins by 10-20% and access by 50%, per BCG. Quora threads laud their role in “leveling the playing field.”.

Examples:

• WayCool: Digitizes food supply chains, raising farmer incomes by 20% for 200,000+ partners.

• Tata Nexarc: Onboards 50,000+ MSMEs with tenders and credit tools.

Formalizing the Informal Economy

Only 10% of India’s economy is formal (IMF, 2023). B2B platforms bring businesses into GST nets, potentially adding $50 billion to GDP by 2030 (EY). OkCredit digitizes bookkeeping for small businesses with its user-friendly digital ledger, ensuring better financial tracking.

Examples:

• Medikabazaar: Digitizes medical procurement for 40,000+ hospitals.

• ShopKirana: Formalizes 50,000+ kiranas with invoicing and credit.

Boosting Manufacturing & Exports

B2B platforms are accelerating India’s manufacturing sector by connecting domestic factories with global buyers. India’s export share is 2% globally—B2B platforms aim for 5% by 2030 (FICCI). They cut export costs by 10-15%, per PwC, making Indian goods competitive. Following companies showcase this:

• Connect2India: Links exporters to 200+ countries, serving 10,000+ businesses.

• Eunimart: Manages $100 million in cross-border GMV for SMEs.

Enhancing Access to Credit for Businesses

Traditional lending institutions often hesitate to fund SMEs due to a lack of credit history. Embedded finance solutions in B2B marketplaces solve this by offering working capital loans and invoice financing. OfBusiness provides raw material financing for SMEs, while Indifi enables credit access through data-driven lending models.

Challenges in Scaling B2B Marketplaces

While B2B marketplaces in India are transforming supply chains, they face significant hurdles in scaling efficiently. From trust-based sales cycles to fragmented buyer bases, overcoming these challenges requires a mix of technology, financial innovation, and operational expertise.

Trust & Relationship-Driven Sales

Unlike B2C transactions, B2B sales are deeply rooted in trust and long-term relationships, making digital adoption slower. Buyers, especially in traditional sectors, prefer known suppliers. Trust gaps deter 20% of potential users. Quality issues—counterfeits, delays—cost $2 billion annually.

Examples:

• OfBusiness: Rejects 40% of suppliers to ensure quality.

• Infra.Market: Spends $10 million yearly on quality assurance.

Competition and Market Saturation

With 500+ platforms, giants dominate. New entrants struggle, with 70% failing within three years. X debates “too many players, too little differentiation.”

Examples:

• IndiaMART: Holds 60% market share, dwarfing competitors.

• TradeIndia: Competes with 5 million users but lags in scale.

Logistics & Fulfillment Complexities

B2B logistics involve bulk shipments, varying delivery schedules, and complex supply chain coordination. Ensuring timely and cost-effective fulfillment across different regions is a major challenge.

BlackBuck, a trucking network, enables shippers and truckers to connect seamlessly with quick access, transparent pricing, and enhanced efficiency.

Payment Cycles & Credit Risk

Long payment cycles and delayed receivables create cash flow issues for sellers, making credit access essential for B2B transactions. It often becomes difficult for businesses to unlock the credit to sustain operations. 70% of MSMEs lack formal credit. B2B platforms bridge this, but gaps remain—$300 billion unmet demand.

Examples:

• Power2SME: Disburses $200 million in loans yearly.

• Rupifi: Supports 50,000+ transactions with credit lines

Regulatory and Compliance Hurdles

Pharma, agri, and export sectors face strict rules, delaying growth by 6-12 months and costing $5-10 million annually. Quora users vent about “red tape woes.”

Examples:

• PharmEasy: Navigates pharma laws, slowing expansion.

• DeHaat: Adapts to agri-policy shifts, a $5 million cost.

The Future of B2B Marketplaces in India

Emerging Trends: AI, Blockchain, and Hyper-Localization

AI cuts costs by 10-15%, blockchain could save $1 billion in fraud by 2030, and hyper-local models tap rural markets. X buzzes with “AI’s B2B revolution.” For instance, AI-powered sourcing can reduce procurement costs by 30-50% through the elimination of inefficiencies and overpayments.

Examples:

• Bizongo: AI reduces packaging costs by 15% for 300+ clients.

• ElasticRun: Reaches 500+ pin codes with hyper-local logistics.

Potential Market Size and Penetration

In 2022, it accounted for approximately 1% of the overall B2B market. Projections indicate that by 2030, this share will approach 5%, translating to a market opportunity of around $200 billion.

• Examples:

  • Jumbotail: Aims for 1 million kiranas by 2027.

  • Captain Fresh: Targets $500 million GMV in seafood.

Role in India’s $1 Trillion Digital Economy Vision

B2B marketplaces are poised to play a pivotal role in realizing India's vision of a $1 trillion digital economy. By digitizing micro, small, and medium enterprises (MSMEs) and streamlining export processes, these platforms can significantly contribute to economic growth.

• Examples:

  • Shiprocket: Supports 100,000+ sellers, a logistics lifeline.

  • Tata Nexarc: Digitizes 50,000+ MSMEs for growth.

SaaS x Marketplace Integration

SaaS-powered solutions enhance supply chain visibility, automate procurement, and streamline vendor management. This shift is fueling efficiency gains and driving adoption across sectors. The global B2B SaaS market is projected to grow at a CAGR of 18.5%, reaching $1819.87 billion by 2033.

Examples:

• OfBusiness: Provides embedded financing and procurement management tools, driving efficiency for 10,000+ SMEs.

Green B2B Marketplaces: The Rise of Sustainable Sourcing

Sustainability is becoming a core focus for B2B marketplaces as industries shift toward eco-friendly sourcing and circular supply chains. B2B platforms are leveraging tech-driven tracking of carbon footprints, offering recycled raw materials, and prioritizing ethical sourcing.

Examples:

• Recykal: A digital B2B marketplace connecting businesses with waste recyclers, processing tonnes of waste annually.

Conclusion

India’s B2B marketplace ecosystem is undergoing a fundamental transformation, driven by digitization, embedded financing, and supply chain innovation. With the sector projected to grow from $60 billion in 2025 to $200 billion by 2030, platforms are no longer just connectors—they are full-stack enablers offering logistics, credit, and SaaS-powered solutions.

As India pushes towards its $1 trillion digital economy vision, B2B marketplaces will play a pivotal role in formalizing the informal economy, boosting MSME growth, and driving global competitiveness. The coming years will determine whether these platforms can scale profitably while addressing the unique complexities of India’s industrial backbone. But one thing is certain—B2B commerce is no longer in the shadows. It’s at the forefront of India’s next economic leap.