When it comes to India’s booming B2B e-commerce market, a large group of investors are betting big on B2B markets.

And Bessemer Venture Partners thinks others will too. In about 11 years, Bessemer predicts that B2B e-commerce will grow from about 1% of India’s $3.75 trillion economy to about 5% of an estimated $6 trillion economy by 2030.

“Today’s massive shift to online transactions is just the beginning,” says Bessemer. “As India’s $3.75 billion economy will grow to $6 trillion over the next decade, we expect a significant portion of this growth to be driven by the digital economy.”

Bessemer has investments in digital brands such as Pinterest, Shopify, Twilio, Yelp and LinkedIn, with $19 billion in assets under management. But the company sees the biggest growth opportunity in B2B digital commerce coming from B2B marketplaces.

“While most of the first $100 billion in India’s digital economy comes from consumer digitalization, we believe that much of the next 10X of the digital economy will come from the digitalization of businesses and online transactions, or what we generally call business-to-business (B2B) online marketplaces,” says Bessemer..

By 2030, Bessemer predicts that India’s B2B market could generate up to $200 billion in annual gross merchandise volume. “It is important to note that even with such significant growth, online B2B Gross Merchandise Value (GMV) would still only represent 5% of all B2B business in India, which is significantly lower than penetration in other countries,” says Bessemer.

B2B marketplaces are poised for rapid growth as they will play an important role in India’s emerging digital economy, Bessemer said.

“The supply side in India is highly non-standardized and fragmented, requiring marketplaces to handle entire transactions through a comprehensive approach. This heightened supply control leads to better customer experience, strong customer loyalty and the ability to build a long-term sustainable business,” says Bessemer. significant market share within a vertical, marketplaces can then explore adjacent verticals or expand their reach within the existing vertical’s supply chain.

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