5 Benefits of Using GeM Portal for Indian Startups and MSEs |
Posted: January 17, 2025 |
Government e Marketplace (GeM) has drastically transformed the public procurement landscape in India, particularly benefiting small-scale domestic businesses including MSEs, Startups, Women-led Enterprises, SC/ST Entrepreneurs, Artisans, Weavers, Craftsmen, Self-Help Groups & Farmer Producer Organisations etc., to freely participate in e-bidding processes and directly sell their products & services to more than 1.5 Lakh government buyers across the country. This digital platform has not only simplified the procurement process but has also brought about enhanced efficiency and transparency in public spending, while establishing an inclusive marketplace. GeM has facilitated transactions worth over ?11.4 lakh crore since its inception in 2016. During this period, MSEs have contributed to nearly 40% of the total GMV. In this blog, we will explore the key ways in which GeM is benefitting Indian Startups and MSEs. ![]() Inclusive Opportunities for Pan-India Sellers opens up new business avenues for small-scale sellers like MSEs, Startups, Women-led & SC/ST enterprises, Self Help Groups, Farmer Producer Organisations, Artisans, Weavers, Craftsmen etc. The platform’s digital ecosystem allows pan-India sellers to directly sell their products and services to over 1.5 Lakh Government Buyers. For Indian Startups & MSEs, GeM represents an opportunity to expand business beyond their local markets and tap into national demand, potentially driving significant growth in the economy. ![]() The platform’s user-friendly interface and dedicated storefronts under the umbrella of #VocalForLocal, empower small-scale sellers, including Startups & MSEs, to exclusively list offerings under dedicated storefronts, enhancing their searchability & visibility among government buyers. Outlet stores like Womaniya and Startup Runway provide a dedicated space to highlight innovative offerings by Indian entrepreneurs with no prior experience. Streamlined Operational Efficiency GeM has digitised the entire procurement workflow. Startups & MSEs can manage all aspects of their transactions online, all with the click of a button. GeM’s automated workflows, electronic documentation, and real-time tracking systems reduce administrative overhead and free up valuable time for Startups and MSEs to focus on growing their business. This digital efficiency not only simplifies operations but also reduces the errors associated with manual processes. The platform also offers comprehensive online training and hosts an exhaustive library of interactive & multilingual training modules, which help MSEs familiarise themselves with the system. These training sessions cover everything from registration and bidding to contract management, enabling Startups and MSEs to effectively navigate and fully harness the benefits of the platform with confidence. Improved Transparency and Accountability In public procurement, transparency in public spending is critical to maintaining trust and fairness. GeM enhances transparency by maintaining a fully digital and auditable record of every transaction. This clear record of activities reduces the potential for corruption and ensures that government contracts are awarded based on merit. For Startups and MSEs, this transparency means they can compete for contracts on an even playing field, regardless of where they are based in India. GeM also provides robust mechanisms for dispute resolution, further protecting small-scale sellers from unfair practices and ensuring that grievances are resolved quickly and fairly. Government e Marketplace (GeM) has drastically transformed the public procurement landscape in India, particularly benefiting small-scale domestic businesses including MSEs, Startups, Women-led Enterprises, SC/ST Entrepreneurs, Artisans, Weavers, Craftsmen, Self-Help Groups & Farmer Producer Organisations etc., to freely participate in e-bidding processes and directly sell their products & services to more than 1.5 Lakh government buyers across the country. This digital platform has not only simplified the procurement process but has also brought about enhanced efficiency and transparency in public spending, while establishing an inclusive marketplace. GeM has facilitated transactions worth over ?11.4 lakh crore since its inception in 2016. During this period, MSEs have contributed to nearly 40% of the total GMV. In this blog, we will explore the key ways in which GeM is benefitting Indian Startups and MSEs. ![]() Inclusive Opportunities for Pan-India Sellers opens up new business avenues for small-scale sellers like MSEs, Startups, Women-led & SC/ST enterprises, Self Help Groups, Farmer Producer Organisations, Artisans, Weavers, Craftsmen etc. The platform’s digital ecosystem allows pan-India sellers to directly sell their products and services to over 1.5 Lakh Government Buyers. For Indian Startups & MSEs, GeM represents an opportunity to expand business beyond their local markets and tap into national demand, potentially driving significant growth in the economy. ![]() The platform’s user-friendly interface and dedicated storefronts under the umbrella of #VocalForLocal, empower small-scale sellers, including Startups & MSEs, to exclusively list offerings under dedicated storefronts, enhancing their searchability & visibility among government buyers. Outlet stores like Womaniya and Startup Runway provide a dedicated space to highlight innovative offerings by Indian entrepreneurs with no prior experience. Streamlined Operational Efficiency GeM has digitised the entire procurement workflow. Startups & MSEs can manage all aspects of their transactions online, all with the click of a button. GeM’s automated workflows, electronic documentation, and real-time tracking systems reduce administrative overhead and free up valuable time for Startups and MSEs to focus on growing their business. This digital efficiency not only simplifies operations but also reduces the errors associated with manual processes. The platform also offers comprehensive online training and hosts an exhaustive library of interactive & multilingual training modules, which help MSEs familiarise themselves with the system. These training sessions cover everything from registration and bidding to contract management, enabling Startups and MSEs to effectively navigate and fully harness the benefits of the platform with confidence. Improved Transparency and Accountability In public procurement, transparency in public spending is critical to maintaining trust and fairness. GeM enhances transparency by maintaining a fully digital and auditable record of every transaction. This clear record of activities reduces the potential for corruption and ensures that government contracts are awarded based on merit. For Startups and MSEs, this transparency means they can compete for contracts on an even playing field, regardless of where they are based in India. GeM also provides robust mechanisms for dispute resolution, further protecting small-scale sellers from unfair practices and ensuring that grievances are resolved quickly and fairly. Access to Finance Beyond immediate business opportunities, GeM helps MSEs scale their operations by providing both “Access to Finance” and “Access to Market” With GeM Sahay 2.0, GeM provides small-scale sellers to avail hassle-free, collateral-free loans up to ? 10 Lakhs, ensuring they have the financial resources to fulfil purchase orders awarded on the platform. Case Studies: Success Stories of MSEs on GeM Many sellers have already established a successful business through GeM. One compelling example is Ms. Kamini Gupta, CEO & founder of Edgefx Technologies, an EdTech startup known for its innovative strategy framework that delivers research products and services to the Business & Education sectors. Today, with 129 orders and a total business of ?10.72 Crore on GeM, she has not only achieved her goals but has also become a role model for women entrepreneurs across the country. EdgeFx Technologies’ success story is just one example of the many inspiring tales that have been made possible by GeM. By providing a level playing field, the platform is enabling social inclusion through the economic participation of women-led enterprises. Cdr Ramesh Madhavan, defence veteran turned entrepreneur, is the co-founder of Tunga Aerospace, a pioneering startup in drone technology. In just two years, the startup has fulfilled 23 orders for 300 drones through GeM. This impressive track record has translated into a business of over ?27 Crore. These stories highlight how GeM is empowering Indian Startups and MSEs to grow and compete on a national scale, contributing to the development of local economies. What sets GeM apart is its ability to nurture innovation and adaptability. Looking Ahead Recently, GeM also launched a newly revamped Revenue Policy intended to help the MSEs and Woman-led entrepreneurs, thereby enabling them to do more business with Government buyers. To reduce operational costs for small-scale vendors, GeM has announced a massive drop of ~97% in their transaction charges. Looking ahead, the future of GeM holds great promise, particularly for small sellers. The government’s commitment to promoting digital transformation and inclusive growth through initiatives like GeM will play a crucial role in shaping the future of public procurement in India. Conclusion GeM has emerged as a game-changer for Indian Startups and MSEs, offering a host of economic benefits that drive growth, efficiency, and competitiveness. By providing a transparent, accessible, and efficient digital platform, GeM empowers MSEs to participate in government procurement, enhancing opportunities to scale in the business-to-government domain. As more Startups and MSEs embrace this digital revolution, the collective impact on the Indian economy will be profound, fostering innovation, job creation, and inclusive economic development.
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