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B2B Digital Services Landscape In India Impact On MSMEs

Published in Sep, 2019

Executive Summary

B2B Digital Services start-ups offer MSME focussed services such as software ‘modules’, one stop solutions, vertical enterprise application, ‘pay as you use’ facility and lifetime licenses.

B2B models in digital services in India have seen a steady growth as enterprises have gradually increased their adoption over the years. Way forward for the services lies in deeper penetration into the MSME segment that accounted for ~38% of GDP to the tune of USD 1.1 Tn, in 2018.

As of 2018, B2B digital services in India are a ~ USD 5.6 Bn industry consisting of Digital Marketplaces & Listing platforms, On Cloud Enterprise Application (SaaS) and Digital Ancillary services. Over the next 5 years, the Indian B2B digital services market is expected to grow at a CAGR of 39%.

Furthermore, the MSME penetration of digital services is in the range of 6% to 10% and assessed direct revenue impact of digital services on MSMEs is to the tune of USD ~18 Bn in 2018 growing at ~30% CAGR .

Manufacturing setups, specifically auto ancillary, Textile, pharma and chemical, food manufacturing and jewellery have been the earlier adopters of digital services among MSMEs.

Although the service sector in MSME has seen high digital engagement and has moved quickly towards spending on digital advertising and setting up its own website, challenges lie in creating low-cost digital talent pools accessible to MSMEs, changing mindsets to increase digital adoption and building overall awareness of digital impact on business efficiency.

This report also covers sector-level insights such as Saas business model, Indiamart business model, Justdial business model, OLX MAU, Justdial revenue and Indiamart revenue, among others.

  • See: Inside the Report

    1. Overview
    1.1. Market Size and Growth Forecast
    1.2. Revenue Impact on MSMEs

    2. Digital Marketplace and Listing Platforms
    2.1. Digital Platforms - Overall
    2.2. Online Wholesale
    2.3. Listing Platforms
    2.4. SaaS enabled Marketplaces

    3. Business Enabling Services
    3.1. Digital Ancillary Services
    3.1.1. Digital Ancillary Services - Overall
    3.1.2. Digital Advertising
    3.2. SaaS
    3.2.1. Saas Overview
    3.2.2. SaaS Market
    3.2.3. SaaS India CRM
    3.2.4. SaaS India ERP

    4. MSME Overview
    4.1. Digital Penetration
    4.2. Export Overview
    4.3. Government Initiative

    5. Impact of B2B Digital Services on MSME
    5.1. Overall
    5.2. Retail
    5.3. Manufacturing
    5.4. Service & Exports
    5.5. Challenges & Trends
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