Chennai: The winter of funding in the startup space has forced B2B e-commerce companies to focus on profitability, which has led to a decline in their adoption. Market penetration of eB2B companies has halved in the past two years.
The period from 2019 to 2021, known as the “Goldilocks era,” ushered in an era of rapid exponential growth, driven by a surge in private capital investment and supply chain disruptions caused by the coronavirus. points out Redseer Consultants.
From 2021 onwards, as private investment recedes, the focus shifts to sustainable growth and eB2B platforms prioritize profitability. This change will cause major eB2B companies to scale back or completely stop operations with unprofitable PIN codes, resulting in buyer penetration rates increasing from around 25 percent in 2021 to 25% in 2021. In 2023 he dropped to 12-15%. has facilitated a long-term transition to resilient and profitable growth. eB2B companies are now focusing on customer value proposition and business density to build profitable growth.
Looking to the future, buyer penetration could triple from 12 to 15 percent today to 35 to 45 percent by 2030. From 2024 to 2030, the sector will see steady growth in penetration and transition from traditional markets due to cost rationalization and prudent investment. Early stage of unrestricted growth.
According to Redseer, eB2B companies like Udaan understand customer needs at a granular level in order to increase adoption among buyers and increase wallet share. This has reduced supply chain costs by increasing buyer density and purchasing volumes.
