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Business-to-Business is fast becoming the next ‘must-invest’ sector in India and 2015 has been the year. With Venture Capitalists pouring in millions of money into <keyword id="6399166" type="UNKNOWN" weightage="100" keywordseo="B2B">B2B</keyword> ecommerce start-ups this space saw exceptional growth in just one year. It also saw some spectacular decisions being taken with the plan to set up the country’s first B2B international ecommerce platform for manufacturers and exporters to sell any product that is made or valued in India, to overseas vendors. “2015 is the year when B2B became a sector on its own,” said Swati Gupta, founder of <keyword id="2741940" type="UNKNOWN" weightage="100" keywordseo="industrybuying-com">industrybuying.com</keyword> that is growing at 25% month-on-month since December 2014. Another portal in the space <keyword id="2735270" type="UNKNOWN" weightage="100" keywordseo="Tolexo">Tolexo</keyword>.com, India’s first and largest online bazaar for Industrial products, has hit a major milestone with over 1, 00,000 businesses buying from its online platform and records more than 40% growth in the customer base month-on-month, within 10 months of its launch. Further, the brand is expected to serve 1 million businesses by 2020. “The adoption rate has been phenomenal,” said <keyword id="2402415" type="PERSON" weightage="100" keywordseo="Brijesh-Agrawal">Brijesh Agrawal</keyword>, founder of Tolexo. He was leading IndiaMart for 19 years. These portals have also attracted huge <keyword id="6357455" type="EVENT" weightage="100" keywordseo="Funding">funding</keyword>. Industrybuying raised USD 9 million in Series B funding in September 2015. The latest to join the bandwagon is rivigo, which offers on-demand B2B logistics services to companies in the e-commerce, FMCG, auto, pharma and the cold chain industries and has secured a funding of USD 30 million. 

	The numbers have proved well why this sector is going to be the ‘next big thing’ in the start-ups revolution. But what changed in 2015 that made it so huge an industry?
 

	Drivers
 

	“What existed earlier was the classified platform where typically businesses would find out with whom they want to do businesses with. But with these portals, businesses can sell and buy instantly, without having to negotiate as the price and availability of the product are there on the site. Hence the overall buying decision becomes a lot easier and quicker for them to make. These portals not only allow you to find the right product and the right supplier, it also ensures the product is picked up from the supplier and delivered to the doorstep,” said Brijesh.
 

	He further said another added advantage was that the products can be delivered in small cities too.
 

	Tolexo has managed to penetrate into the deepest parts of the nation, with customers from remote locations on its list, from among more than 900 cities, with over 65% of this traction coming from Tier 2, 3 &amp; 4 cities. 
 

	Challenges
 The sector mainly faces four main challenges, <keyword id="6383566" type="PERSON" weightage="100" keywordseo="Taxation">taxation</keyword> systems in different states, supply chain network, adaptability to the new online platform and awareness. 

	1. Taxation
 

	Different states have different taxation for different products. Dealing with that is a bit of a problem as the supplier can come from any city for that matter.
 

	2. Adaptability
 

	“B2B has never been exposed to ecommerce before, both from the seller side and the buyer side. So, the nuances that come along a typical B2B ecommerce business are something that we are experiencing for the first time,” said Brijesh.
 

	3. Supply chain network
 

	The third challenge is with the logistics infrastructure itself. The major traction that comes from Tier 2,3 and 4 cities. The existing supply chain network is not predictable in these areas.
 

	“So delivering within a specified timeframe is big challenge,” said Swati.
 

	4. Awareness
 

	Also, lack of awareness is something that cause lack of trust between the supplier and the customer.
 

	Some predictions for 2016
 A clear supply chain network would be built for <keyword id="3179231" type="UNKNOWN" weightage="100" keywordseo="B2B-ecommerce-portals">B2B ecommerce portals</keyword>, predicts Brijesh while adding that they are planning to build a credit based payment mechanism for business to buy online in 2016. 

	Swati predicts her platform will witness a growth of 3x in the next six months.

	 
	 
	(Image credits: Indiatimes)

A clear supply chain network will be built for B2B ecommerce portals in 2016: Brijesh Agrawal, founder of Tolexo predicts

It’s that time of the year again. The anticipation is growing and expectations galore, as the country gears up for the Union <keyword id="2783177" type="UNKNOWN" weightage="20" keywordseo="Budget-2016">Budget 2016</keyword> that is just a good few weeks away from being presented by finance minister <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword>. The time is ripe for a slew of measures to catapult India Inc.’s growth bandwagon to glorious heights. 
 
The government has been riding high on programmes such as Start-up India, Digital India et al. that are imperative to the economic and social growth of the country. Currently, India is ranked second on the global list of the countries that boast of the largest number of start-ups. At present, most of these start-ups dabble with the B2C E-commerce business sector. But, the status-quo is rapidly changing with more and more new start-ups venturing into the booming B2B e-commerce extravaganza. The potential that B2B e-commerce segment beckons is huge and many start-ups have seized upon this opportunity with open hands. Thus, the upcoming budget session is pivotal from the perspective of the B2B E-commerce start-up ecosystem. There are so many reforms that the government can unleash in this highly awaited budget session that can have far-reaching repercussions on the Indian economy as a whole. 
 
Here’s a comprehensive lowdown on the startup community’s recommendations and expectations from the Union Budget 2016. 
 
Relaxation of taxes 
 
For a budding industry, a start-up friendly tax regime is a must. Recently, the government had announced during its Start-up Policy that they will exempt start-ups from taxation for a period of three years. Sadly, that time-frame would not suffice for a disruptive company as it takes more than three years for such companies to start generating decent profits. Therefore, there should be some sort of threshold limit for tax breaks, so that once the company is able to accrue some profits, they can be made eligible to be taxed. 
 
Ease of Business 
 
Many budding entrepreneurs have to go through a lot of unbearable hassles while they are setting up their businesses. Leasing of property, etc. are a just a few barriers that get tangled in red tap-ism and the indifferent attitude of bureaucracy. It will be considered a major push from the government if they are able to eliminate these clogs from the growth wheel of Indian E-commerce. 
 
Clarity on Start-up India initiative 
 
Start-up India is a game changer, literally. There’s not even the slightest iota of doubt that with full governmental support and nurturing, start-ups based out of far-flung rural areas in India will blossom into powerhouses in the future. But, there is a dearth of clarity on the ratio of funding to start-ups belonging to different parts of the country. For instance, no clause is present in the initiative that mentions what kind of start-ups will be favoured or what industry segment(s) will be the focus of the initiative. 
 
<keyword id="6354679" type="ORGANIZATION" weightage="20" keywordseo="GST">GST</keyword> Bill and Timelines 
 
Firstly, Goods and Services Tax Bill, GST, is the need of the hour. Based on the current GST less model, different states levy different taxes on the goods sold in their territory. Many buyers and sellers have to undergo a lot of ordeal in this aspect and they need a clear visibility on goods’ tax scenario. If a GST bill is passed in this session, it will propose a uniform taxation on varied goods and services pan India. Secondly, timelines for projects should be made more cohesive. A slew of measures have been launched, but we are yet to see the measures paying rich dividends on many fronts, although the aforementioned steps are in the right direction. There needs to be an urgent revamp of the policy framework and now the focus should shift to mere implementation. 
 
The article has been authored by Swati Gupta, CEO and founder, Industrybuying.com, a B2B ecommerce startup.

Budget 2016: Can the Modi Govt deliver these
expectations of the start-ups?

Sumit Chhazed, Co-Founder, CredR 
 
"The <a href="http://www.businessinsider.in/StartupIndiaStartups-and-investors-are-smiling-their-way-out-of-Vigyan-Bhawan/articleshow/50606389.cms">startup plan</a> is quite a promising one and we are happy with few initiatives proposed by the government such as tax exemption for 3 years, no inspection for compliance under labour law and starting start- up in 1 day via mobile app. Also the government acknowledges failures to be part of building great start - ups and promises 90 days exit plan, which is well received by the start - up community. Efforts to seed entrepreneurial culture and supporting it through incubation set ups in universities should really propel product innovation. 
 
Government is looking to accentuate the Make in India and Make for India efforts. Plans to create 1000cr fund over next 4 yrs with incentive for tax capital gains to investors would really boost start - up risk appetite in the whole ecosystem. This is indeed a wonderful move from the government and we hope to see these initiatives executed in the near timeframe." 
 
Samar Singla, CEO and founder, Jugnoo 
 
Immense potential for entrepreneurship in India can be forseen with this campaign. By making the taxation and compliance norms easier, the government has taken some very positive steps in this direction. 
 
Raghav Chandra, Co founder, Urbanclap, 
 
This initiative of PM Modi is the right step in making the environment friendlier for <a href="http://www.businessinsider.in/StartupIndia-Standup-India-Softbanks-Masayoshi-Son-ishaving-a-roaring-love-affair-in-India-and-hes-in-no-hurry-to-move-on/articleshow/50601754.cms">entrepreneurs</a> and thus encouraging them to start up. We will wait for the fine print to understand exactly what the next steps will be. However, I can only say that outcome will be in the positive direction and we are very excited! 
 
Krispian Lawrence, Co-Founder &amp; CEO, Ducere Technologies – Makers of the world’s first haptic footwear Lechal 
 
The government's initiative to fast track start-ups patent applications is a very beneficial move to encourage start-ups. In addition, 80% rebate on patent filing and prosecution deals will allow start-ups to file and create intellectual properties which in the long run will end up being additional sources of revenue. This will spur product innovations in the country and allow Indian product companies to compete globally. Other encouraging aspects of the plan include self certification on labour and environment for all Start-Ups to be up in three years. 
 
Start-ups face a lot of challenges when setting up a business and if the government can ease smaller issues; it will help us to focus on scaling up the business. 
 
Shailesh Jain Co-founder, Mirraw.com 
 
It is delightful to know that our Prime Minister has taken into account small and medium size Start-ups that are not funded by huge investments. Specially, the tax benefits policy and ease on patent fee will extensively support a bootstrapped company like us where single money counts. India is a breeding ground for innovation and this intiative will give <a href="http://www.businessinsider.in/Startup-IndiaOla-Cabs-Bhavish-Aggarwal-is-conscious-thatsecurity-is-a-concern-more-measures-need-to-be-taken/articleshow/50602554.cms">opportunitie</a>s to many young minds to explore unique ideas. 
 
Anupam Tulsyan co-founder and managing director, Peachmode.com 
 
"We are going to witness a revolution in Start-up culture, with our country's PM validating the governing rules. Elimination of regulatory burden, faster certification and easy exit policy will encourage many youngsters to join the wagon. Tax redemption for 3 years is an important move by our Government that will help the new entrants to scale their business without VC's money. These tax redemptions will allow a bootstrapped company like us to be self-reliant and make profitable in the long run We have high hopes with Startup Indiamovement and sincerely believe that it will lead to many job creation in future. " 
 
Shaifali Agarwal Holani, founder and CEO, EasyFix 
 
What an initiative and a great day for India. Most populated India has sharpest brains of all times and this initiative will give a platform to many enthusiastic but under confident talents to come out of their ordeal. Encouraging privatisation will speed the pace at which India is developing and we will become a developed country soon. 
 
For us, EasyFix is a labour development &amp; construction focussed company, PM Modi said "he is trying to foster innovation and incubation" and our startup is looking forward to collaborating with Modi Govt for <a href="http://www.businessinsider.in/Exclusive-Practo-Foundersays-Modi-govt-should-do-away-with-regulatory-hurdles-in-the-healthcare-sector/articleshow/50604175.cms">skill development</a> and labour development initiatives. We want to be able to contribute to the society &amp; transform the unorganised labour market by doing things right, and that is by better execution of skill development programs. 
 
Swati Gupta, CEO and Founder, Industrybuying.com 
 
Patent fee reduction of 80% will be huge for IP based startups who can not only protect their intellectual property , but patents once registered add to tangible valuation increase" 
 
"No inspections for 3 years will very much reduce the regulatory burden related to VAT set up in new states, warehouse procedures , new factory set ups and much more physical infrastructure related start ups. 
 
Puja Bansal, Founder &amp; Director, Myheera.com 
 
Listening to action plan today I m most exited about the tax exemptions which will release the maximum burden on a startup like us. Self certification compliance in which for three years you are not disturbed from the govt end and you are at ease of doing your best to perform and more focused on the idea and its implementation. Today a start up can register themselves in one day which truly will show more minds and ideas coming quickly and getting jumpstarted. The fund of 10,000 cr which has been created to boost the startups will bring so much confidence as this is coming from our own country. 
 
Incubation centers getting promoted along with pre incubation centers will surely again prevent many failures in startups. Now when we see the entire ecosystem is contributing to 'Make in India' the sentiments of manystartups will change with much more deliverables and may more opening and changing the world. India is full of talents and now when our govt has finally joined hands we will see it as a big game changer with entrepreneurs emerging from every corner of the country. Faster exits were again a breather for many startup who again feel morally down with their failures. It will not be late when india will become world’s largest start up hub. 
 
Manish Kumar, co-founder and CEO of GREX 
 
“The Prime Minister’s announcement of the Startup Policy had quite a few important and measurable benefits that the startups can gain from. Most importantly, the Prime Minister and the Finance Minister outlined a change in the principle approach of the government towards the economy – that the government wants to stay away from deciding and directing on what needs to be done. Instead, the Government looks at a policy of arm’s length enablement. This stand is a bold new change in the government policy and disruptive in its own right. 
 
Venture debt was miserably missing in the ecosystem. Startups have only been used to equity as a mode of capital. GREX is completely poised to launch venture debt in a few weeks’ time. This will help our partner Banks and NBFCs walk the road along with us more aggressively as credits become guaranteed. 
 
Another big thing that was anticipated but not announced is the addressal of concerns around notional valuation gains to investors over and above the fair market value. The incidence of such tax deductions today lie at startups’ end. The ecosystem will expect more details on this front. However, the Prime Minister’s assurance on this is welcome. Some other welcome steps in favor of companies and therefore their investors are retention of profits by the company for three years.” 
 
Kulpreet Kaur, Co-founder, Shop Pirate Coupons

	“The Indian government has kick-started ambitious Start-Up India mission that envisages technology business incubators and research parks. This was for the first time a government in India has launched an exclusive program for startups and the expectations were really high. The vision to set up 75 such startup support hubs in the National Institutes of Technology (NITs), the Indian Institutes of Information Technology (IIITs), the Indian Institutes of Science Education and Research (IISERs) and National Institutes of Pharmaceutical Education and Research (NIEPRs) will help India to develop local brands that can create global footprints. In the past India has been a market for technological innovation created overseas. The time has come now that the Indians create technological products at home that can be marketed globally. 
	We have the skills and need a platform. 
	Start-Up India is going to go a long way in filling up this void. I would say today is the day, that will take new and young entrepreneurs to a next level as the issue from incorporation to talent to infrastructure, all have been discussed. Its appreciable that the major concern of B2B business which is 10% TDS and 14.5 % ST, have been noticed and government saying they will rationalize the same. <o:p></o:p>

	Also as rightly said by Anisha Singh, it’s important that women entrepreneurs should be looked upon as entrepreneurs, not just women entrepreneurs. It’s our work that should get noticed not our gender. However the change is need of time and to give this equality government has to encourage women entrepreneur. It’s good to see that certain provisions are made where there are funds allocations for women entrepreneur. Ecosystem is getting changed and allowing more women to work, which is a highlight of Start-Up India Initiative. Apart from this startup sector becoming unregulated will be better for the sector. Instead of looking at Singapore, we will now have our ecosystem in India. Hoping the budget session will further revolutionize the startups in India. Now the only concern will be 'Sell it India" that is a challenge that needs to be addressed next.<o:p></o:p>

	Amit Ramani, founder and CEO, Awfis Space Solutions Pvt Ltd
Honourable PM Modi's action plan demonstrates a startup like thought process. It provides simple yet innovative policies that can catalyse a revolution to transform India as the most innovative country and major player in global GDP, a feat India enjoyed around 300 years back.

#StartupIndia: Here's what startupreneurs have to say about PM Modi's Startup India polices

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A clear supply chain network will be built for B2B ecommerce portals in 2016: Brijesh Agrawal, founder of Tolexo predicts

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Budget 2016: Can the Modi Govt deliver these expectations of the start-ups?

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#StartupIndia: Here's what startupreneurs have to say about PM Modi's Startup India polices

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