Business-to-business (B2B) marketplaces in India are set to clock $125 billion in GMV (gross merchandise value), Avendus Capital said in a report, instilling confidence in the sector that has seen some of the country’s top revenue-grossing unicorns in FY22 (2021-22).

B2B marketplaces, as of calendar year 2022, had a GMV of about $20 billion, which grew almost 100 percent over 2019 on a CAGR (compounded annual growth rate) basis, according to the report. Now in the next five years, it is expected to grow at 45 percent CAGR, the report showed. Moreover, tech penetration in the B2B marketplaces is expected to deepen to 5 percent by 2027 from under 1 percent currently.

“India also has a lot more fragmented supply chain compared to the developed countries. Here small and medium enterprises either supplying to larger companies or larger companies supplying to small and medium enterprises, or intersect between small and medium enterprises so trade volumes are actually much bigger than what happens globally,” said Varun Gupta, Managing Director, Investment Banking, Avendus Capital.