L&T Forays Into B2B Ecommerce Space, Launches L&T-SuFin

With an eye on the services market, construction giant Larsen & Toubro has announced the launch of a new B2B ecommerce platform for industrial products and services.

Called ‘L&T-SuFin’, the B2B platform will allow MSMEs to digitally source their industrial supplies ‘pan-India’ online.       

The company says that it aims to address the ‘inefficiencies’ in the Indian industrial supply chain system and aims to provide greater transparency inventory optimisation in the segment.

The ecommerce platform hosts products across more than 40 categories and will cater to a pan-Indian market. In addition, the platform will also enable an entire ecosystem by enabling MSMEs to buy seller tools, ensure delivery, and engage in negotiations on a single platform.

The company claims that the platform will only host KYC-verified sellers and buyers, in a bid to check rampant duping of customers on ecommerce portals. The platform will reportedly serve more than 15,000 pin codes across the country.

L&T-SuFin will also provide working capital to MSMEs enrolled on its platform. The company has reportedly tied up with a slew of banks to streamline loan disbursal. 

Speaking on the announcement, L&T CEO and MD, SN Subrahmanyan said, “As India aspires to become a $5 Tn economy, there lies a critical need to digitise supply chains to enhance the overall global competitiveness of Indian industries, especially small and medium enterprises. With the launch of L&T-SuFin, we take yet another leap in our digital transformation journey, building on our legacy of trust and deep understanding of the ecosystem.”

He further added that, “We are confident about L&T-SuFin transforming the B2B marketplace for industrial products. Making it easily accessible, convenient, and transparent, even for the customers in and beyond tier-1 and tier-2 cities, thereby enabling a level playing field and inclusive growth for all businesses.”

The platform will leverage on L&T’s digital and technology capabilities to help simplify the value chain for SMEs. L&T would operate as an aggregator for products and services on the platform, and would earn 1.5% transaction on deals. 

The marketplace will compete against other heavyweights which include behemoths like IndiaMART and new tech companies including Moglix, Bizongo among others.

Meanwhile, the market continues to soar to newer heights. As per a report by Research and Markets, the global B2B ecommerce market size is expected to reach $ 20.9 Tn by 2027, growing at a CAGR of 17.5% during 2020 -2027. 

The report also highlighted that the Asia Pacific region held the largest revenue share exceeding 65.0% in 2019 in terms of B2B ecommerce and is expected to expand at a CAGR of over 18% during the forecast period.

L&T is a multinational company engaged predominantly in Engineering, Procurement and Construction (EPC) projects and operates in 50 countries globally. 

The company’s consolidated net profit fell 16.70% to INR 2,054.74 Cr in Q3 of FY22 over Q3 FY21. In contrast, net sales jumped 11.14% to Rs 39,562.92 crore in Q3 FY22 compared to the same period last year.

In October last year, the industrial conglomerate had also announced its foray into India’s booming edtech space with the launch of L&T EduTech.