The Indian economy has been significantly impacted by online commerce through democratising online shopping, enabling greater access to essential services for underserved individuals and small businesses, and enabling greater financial inclusion.
There are potential white spaces for marketplaces to emerge in India based on evidence of success in mature markets, such as the US and China. These white spaces include gaming, caregiver services, real estate reservations, creative content, and web 3.0.
Since disposal incomes are rising and the middle class is expanding, ecommerce penetration has grown significantly over the last decade. Indian marketplaces will impact India’s growth story in the next five years due to solid macroeconomic factors and many smaller unorganized offline industries.
Approximately 400 million to 450 million shoppers will shop online over the next five years, up from 200 million to 230 million today. Online marketplaces’ gross merchandise value (GMV) has expected to grow from $100 billion to $350 billion by 2027.
The role of technology in MSMEs:
Bain & Company and Accel collaborated on a report that predicted that more than 15 million MSMEs would participate in online shopping by 2027, up from 6 million now, and create 7 million jobs simultaneously.
A rise in online marketplaces in India will be adopted more rapidly as digital penetration grows and the digital ecosystem keeps improving. India’s next five years will be marked by significant growth opportunities thanks to solid macro factors and investor support for Indian marketplaces.
India’s ecommerce business reveals the extent to which business-to-consumer and business-to-business marketplaces have grown in this market. The backbone of ecommerce businesses today is data and automation, and an array of cutting-edge AI and Machine learning are available to help enterprises to unlock actionable insights and discover new business opportunities.
Our start-up ecosystem has more than 100 billion dollars in gross merchandise value (GMV), representing more than one-third of significant outcomes. Today’s gross merchandise value (GMV) ranges between $150 billion and $200 billion, increasing to $350 billion in the next five years.
Additionally, many SMEs have also become digitally enabled in recent years. They have benefited from greater access to credit and fulfilment services and increased credit availability at better terms and innovative B2B marketplaces.
The upstream B2B, fintech, shipping, and logistics segments have tremendous potential for growth in the coming five years, which benefits both MSMEs and large companies.
The marketplaces enable lenders to use better their capital and borrowers, especially those new to credit, to have a wide range of financial products available to them.
Over $400 billion of financial services are addressable. Demand is growing from retailers, and micro, small, and medium businesses. The B2B market upstream is worth around $1 trillion. Considering online penetration’s significant potential and the potential to resolve considerable buyer and seller pain points, online business models have great potential to succeed.
Many MSMEs’ lack of access to banking services, low insurance penetration, and increasing financial literacy has contributed to the proliferation of fintech marketplaces.
Fintech firms are driving MSME expansion in India
MSMEs have tremendous potential for growth, and if given the right digital inclusion tools, small merchants can significantly impact the financial ecosystem. Fintech companies are expanding into new categories, products, and industries, as they recognize small merchants’ immense influence on the financial ecosystem.
The Indian financial revolution has provided MSMEs with the hope and comfort they need to grow and overcome their challenges. Fintech companies such as Easebuzz believe that SMEs can profoundly affect the financial system if they receive the right digital inclusion tools.
Merchants can accept payment via multiple modes like credit/debit cards, UPI, QR codes, and e-wallets using a payment gateway like Easebuzz. Smartphones can do everything, so retailers do not need physical infrastructure for payment.
A fintech company can speed up the funding and cash flow process, boosting MSME’s growth. Small merchants can use fintech to access lending, insurance, and banking, not just for digital payments.
Fintechs want to help in any way they can to improve consumers’ lives and improve retail financial inclusion. Mobile payments have just become a speak of the vast puzzle of digital infrastructure.
While fintech began as a way for individuals and companies to interact with financial services using technology, it is now starting to be used to change the way individuals and companies interact with the financial system. Fintech will offer significantly different products and services in 10 years compared to what it provided initially.
There have been many benefits for small and medium-sized enterprises (SMEs) due to the advent of multiple B2B marketplaces in the last five years. As a result, consumers have evolved drastically in their behaviour, with a greater emphasis on digital influence, payment collection solutions, more choices, and more convenience preferences.