What the data shows about procurement platforms serving manufacturing and construction MSMEs
Sources: B2B trade, marketplace GMV and digital penetration as stated in the JSW One DRHP; MSME debt demand and supply: SIDBI, as cited in the same DRHP.
This note looks at integrated B2B platforms in India's industrial procurement. It uses only the data and analysis in the JSW One DRHP. The aim is to show four things plainly: how large the market is, how far these platforms combine services, what use they are to buyers, and how much room there is to grow.
Indian B2B trade is around US$2 trillion. Within it, the addressable market for manufacturing products was about INR 8,836.1 billion in FY26, growing at about 8.5% a year from FY21 to FY26. For construction products, the FY26 market was about INR 11,300.8 billion. The supply side is scattered: 30,000 to 35,000 regional distributors work without standard processes or technology.
| Measure | Value | Note |
|---|---|---|
| Indian B2B trade | ~US$2 trillion | Overall market |
| Manufacturing products | ~INR 8,836.1 bn | FY26; ~8.5% yearly growth, FY21–26 |
| Construction products | ~INR 11,300.8 bn | FY26 |
| B2B marketplace GMV | ~US$26.4 bn | FY26 |
| Regional distributors | 30,000–35,000 | No standard processes or technology |
Source: JSW One DRHP.
The JSW One DRHP describes three phases of B2B commerce. In the first, multi-tier networks of distributors, dealers and stockists gathered scattered demand, gave trade credit and kept stock available locally. In the second, listings-based marketplaces brought supplier discovery online, but buyers and sellers largely handled fulfilment and financing outside the platform. In the third, integrated full-stack platforms bring sourcing, fulfilment, logistics, financing and post-sales support into one workflow.
The difference shows in who manages what. On traditional channels, buyers manage logistics and depend on distributor credit. On marketplaces, fulfilment depends on the seller. On integrated platforms, logistics are managed by the platform and financing is built into the transaction.
The DRHP places traditional distribution at high asset intensity with narrow services, and marketplaces at low asset intensity with limited services. Full-stack platforms sit between the two: asset-light, yet offering a wide range of services by working with partners instead of owning all the infrastructure. Revenue can then come from commerce margins, financing income, logistics services and processing fees, all from one customer relationship.
The DRHP notes India's digital public infrastructure has cut the cost and effort of onboarding customers, verifying identities, completing transactions and extending finance. Udyam registration gives a recognised business identity. GST-linked records and e-invoicing add verifiable documents. UPI and related systems add real-time settlement and a visible payment history.
For MSME buyers, the JSW One DRHP points to problems that feed one another. Smaller purchases reduce bargaining power, higher procurement costs use up cash, late customer payments slow restocking, and many buyers fall back on short-term or informal credit. MSMEs receive deliveries in about 20 days on average, though this varies with product, order size, location and stock.
| Indicator | Data |
|---|---|
| Bank credit to MSMEs, FY21 | ~INR 17.8 trillion |
| Bank credit to MSMEs, FY26 | ~INR 38.3 trillion (CAGR 16.5%) |
| Assessed MSME debt demand | ~INR 64 trillion |
| Formal debt supply | ~INR 34 trillion |
| Manufacturing MSMEs naming credit access a major challenge | ~20% |
| Payment period for Micro and Small Enterprises | Not more than 45 days (MSMED Act) |
| Applications on MSME Samadhaan Portal, June 2026 | ~2.5 lakh |
| Cases disposed of by facilitation councils | ~58,148 |
Sources: Reserve Bank of India (bank credit, FY21 and FY26); SIDBI (debt demand and supply, June 2025); MSMED Act; MSME Samadhaan Portal; all as cited in the JSW One DRHP.
Formal credit has grown, yet it meets only a little over half of assessed demand. The DRHP argues that the main limit is the ability to judge MSME credit risk, not the availability of money. Financing tied to purchase orders, invoices, payment behaviour and transaction history looks at the same activity that creates the need for credit. This is why the DRHP treats financing and procurement as one subject.
The DRHP also lists six costs buyers carry when they manage procurement separately: search and coordination, inventory and continuity, documentation and information, financing, exception handling, and cash conversion. A single workflow with one transaction record is meant to reduce these.
Manufacturing buyers use the platform for recurring specifications, processed materials and inventory. Construction buyers use it for several materials, project-stage demand, site deliveries and payment cycles. In both cases, several separate relationships are replaced by one point of coordination. The DRHP adds that JSW One also gives third-party entities, including JSW Steel and JSW Cement, a technology-enabled channel to MSME customers who are hard to reach through traditional distribution.
Digital penetration of B2B commerce in manufacturing and construction is estimated at only about 3% in FY26E. The comparison with other large economies shows the gap.
The B2B marketplace segment is estimated at about US$26.4 billion in GMV in FY26 and is expected to grow at about 39.5% a year. The JSW One DRHP links this opportunity especially to Tier 2 markets (towns and cities of 0.5 to 1 million people) and Tier 3+ markets (below 0.5 million). It also notes that India is projected to become the world's third-largest economy by FY30. Together with growing enterprise formalisation, wider use of digital payments and the rising MSME need for reliable supply, quality and pricing, these are the factors the DRHP gives for expecting a gradual shift towards integrated procurement.
Reserve Bank of India (MSME bank credit); Small Industries Development Bank of India (MSME debt demand and supply, June 2025); Micro, Small and Medium Enterprises Development Act (payment period); MSME Samadhaan Portal (June 2026); Lattice analysis (business-model positioning, Fig. 39); JSW One DRHP (all other figures and analysis). Sources are cited as named in the DRHP.
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