B2B retail startup Udaan is giving Reliance Retail’s online grocery platform JioMart a tough fight for market share. According to a report by Redseer, Udaan has managed to grab 46 per cent of the market share followed by Jiomart.
According to the report, Udaan and JioMart are retailers’ most well-known and preferred platforms for future EB2B purchases. Currently, over 46 per cent of the overall EB2B market has been captured by Udaan. Of this, within the retailer-led EB2B space, Udaan has captured 62 per cent and in the wholesaler-led EB2B segment, it has captured 16 per cent of the market share. Other players include, Ajio Business Elastic Run and Dealshare among others.
Over 53 percent of those surveyed said they were likely to increase spending on Udaan whereas 41 percent said they would increase their spending on JioMart.
Gross merchandise value
The report further added that India’s B2B e-commerce market, led by players like Udaan and Jiomart, will reach $90-100 billion in gross merchandise value (GMV) by 2030. As of 2021, it is a $5 billion EB2B market in 2021.
Compared to China, which has a penetration of 15 per cent from the EB2B players, currently, in the Indian market, the penetration is only captured at 1 per cent of B2B retail as of 2021 which will reach to ~8 per cent by 2030 enabled by robust retailer and brand adoption.
As of last year, the general trade B2B Retail stood at $619 billion. Redseer’s projection states that by 2025, it stood at $866 billion. Of this, 82 per cent will come from unorganised trade (branded and unbranded trade) which is a dip from 85 per cent in 2021. It was followed by the distributor-led growth at 15 per cent, up by 1 per cent from 2021. EB2B market which was at 1 per cent, is likely to grow to 2.5-3.5 per cent by 2025.
Currently, most of this growth in the EB2B segment is coming from the metro cities and tier-one markets. According to the report, over 40 per cent of the growth comes from these markets whereas the penetration from tier-two is approximately at 10 per cent and almost at zero from small towns.