“B2B ecommerce is showing signs of rapid digital adoption, which translates into significant growth for MSMEs. We estimate the B2B market to reach 40 billion by December. It will be two times the B2C market by 2020. Therefore OfBusiness is clearly in the right place at the right time”, said Chirag Dagli – the Director of Ecumen while giving his research insights on a startup active in B2B commerce.
OfBusiness, a Gurgaon-based start-up is active in the area of online marketplace for B2B commerce. The company incorporated in September 2015 as an aggregator for buyers and sellers, focuses on 12 of the 300-odd SME hubs in the country and has about 1,000 suppliers.
The company’s Founder counts raw material, finance and logistics as age-old issues for small and medium enterprises (SMEs). The Director of Ecumen stated that if OfBusiness needs to be a winner in the said field, then they need to solve three key problems of procurement – sourcing, logistics and credit. He further said that most of the online players are figuring out a solution through their platform and hence, the litmus test for OfBusiness is to solve this faster than their competitors.
OfBusiness is tapping the market left unexplored by other B2B players. They’re trying to garner systematic sourcing on their platform, unlike players like IndustryBuying.com and Tolexo.com which focus on spot sourcing.
“Metal Junction and MMRTC are the only two major players who focus on systematic sourcing which is a much larger opportunity compared to spot sourcing. If they can build a strong foundation in B2B systematic sourcing and focus on the niche products in targeted geographies, they can grab a huge share of B2B ecommerce. This, of course, is easier said than done,” Mr. Dagli concluded!