GeM closes in on Amazon, Flipkart in gross merchandise value


The Government eMarketplace (GeM), the six-year-old public procurement website, is closing in on e-commerce giants and Walmart-owned in terms of gross merchandise value (GMV).

Prashant Kumar Singh, chief executive officer of GeM, recently said the portal would be the largest e-commerce platform in India by the end of the current financial year, crossing and . Singh pegged the FY23 GMV target for at Rs 2 trillion (around $25 billion).

In FY22, recorded a GMV of $14.2 billion, as against India’s $17 billion and Flipkart’s $23 billion.

is time-efficient as the turnaround time for award of contract on the platform is significantly lower than state-specific portals.

This has reduced the share of cancelled tenders to single digit in several states.

The portal also saves cost in the range of 8-10 per cent of GMV. If GeM manages to achieve the Rs 2-trillion target by FY23-end, it will save around Rs 20,000 crore to the public exchequer and public sector undertakings.

The average order value per day has witnessed a six-fold jump, and the average number of orders per day has almost doubled in FY23 compared to FY21.

Where they stand
Platform FY22 annual GMV ($ bn)
GeM 14.2
Amazon India 17
Flipkart 23
*Portal crossed ~1 trillion in GMV on Tuesday in FY23
*Cumulatively, it has logged over ~3 trillion in GMV since inception
*GeM’s revised GMV target for FY23: ~2 trn (about $25 bn at current exchange rate)
Sources: GeM; Bernstein report; Walmart Publications
Saving time and effort
State Turnaround time for award of contract (in days) % of cancelled tenders
GeM State portal GeM State portal
Odisha 34 166 3% 22%
Assam 23 65 9% 24%
Karnataka 63 137 6% 47%
Maharashtra 42 95 9% 23%
Rajasthan 23 95 4% 24%
Tamil Nadu 34 127 10% 12%
Source: GeM

Gaining traction
FY20-21 FY21-22 FY22-23
Average order value per day (~ crore) 69 292 410
Average no.of orders per day 5,337 9,086 10,418
Source: GeM



Source link

Comments are closed.