According to Bessemer Venture Partners (BVP), by 2023 there will be a $200 billion market potential for entrepreneurs in the business-to-business (B2B) marketplaces category.

According to the Bengaluru-based venture capital business, the expansion is currently fueled by four factors: growing digital adoption, maturing digital infrastructure, favorable regulatory regulations, and a favorable cross-border environment.

E-commerce, logistics, and payment systems including Unified Payments Interface (UPI), Open Network for Digital Commerce (ONDC), Account Aggregators, and Open Credit Enablement Network (OCEN) are a few examples of the important drivers, according to the research.

The research said that additional examples included the Goods and Services Tax (GST) regulatory framework, the Trade Receivables Discounting System (TReDS), and the Production Linked Incentive (PLI) for manufacturing.

BVP also recognized three types of developing prospects in the B2B marketplaces domain: product markets, service marketplaces, and marketplace infrastructure startups.

Solutions on the product side include full-stack online marketplaces that link buyers and sellers of physical goods while also offering relevant services like selection, quality assurance, and logistics. Fashinza, Moglix, Zetwerk, DeHaat, Infra.market, and PharmEasy are a few examples.

Services marketplaces connect organizations with service providers such as freelancers, consultants, and agencies and operate in industries such as marketing and sales, information technology, recruiting and human resources, and industrial, to name a few. PepperContent, One Impression, and Expertrons are a few examples.

Marketplace infrastructure includes technology platforms and solutions in areas such as payments, logistics, and warehousing, among others. that allow businesses to create, support, and operate B2B markets. Rupifi, Freight Tiger, ElasticRun, and Shiprocket are a few examples.

BVP stated in five assumptions that would help the industry scale in the future that a verticalised approach allows for deeper supply building, with examples from the fashion jewelry and seafood verticals.

BVP also stated that a software layer provides smooth experiences, standardised workflows, and promotes stickiness in B2B markets, and that addressing the financial needs of unorganized suppliers aids scalability.

Among other hypotheses, BVP stated that a full-stack, supply-first, transactional approach allows for higher profitability, retention, and transaction experience, owing to end-to-end supply chain control.