Synopsis
Bessemer Venture Partners (BVP) has estimated the online-first and technology-enabled business-to-business (B2B) marketplaces category of startups to become a $200 billion market opportunity by 2023.
Bessemer Venture Partners (BVP) has estimated the online-first and technology-enabled business-to-business (B2B) marketplaces category of startups to become a $200 billion market opportunity by 2023.
The growth is currently driven by four factors -- increased digital adoption, mature digital infrastructure, favourable regulatory policies, and a conducive cross-border environment, according to the Bengaluru-based venture capital firm.
Other examples included regulatory frameworks around Goods and Services Tax (GST), Trade Receivables Discounting System (TReDS), and Production Linked Incentive (PLI) for manufacturing, the report added.
“Any business that functions as an agency today and is serving other businesses is an opportunity to create an internet- and online-led B2B marketplace and services,” Anant Vidur Puri, partner, BVP told ET in an interaction.
While the B2B portion of the economy is estimated at $2.5 trillion in 2023, the report shows that the penetration of e-commerce in this segment is just 1%, far behind the United States, which is at 18%, United Kingdom at 20% and China at 25%.
Further, BVP identified three kinds of opportunities emerging in the B2B marketplaces domain – product marketplaces, service marketplaces, and marketplace infrastructure startups.
