Startup Mahakumbh Is A Golden Bridge For Startups To Connect With Govt: Ajay Bhadoo Of GeM

When the government rolled out its e-marketplace for mandatory online procurement of goods and services in 2016, the digital waves had just started making ripples on the Indian shores. Few could predict the ripples to turn into major waves and the Government e Marketplace (GeM) to become a powerhouse. 

From saving more than INR 1.5 Lakh Cr in the public exchequer to cutting through the red tape, dismantling intermediaries, and increasing transparency, GeM has emerged as a crucial cornerstone for India’s digitally enabled good governance policy. 

Startups have already secured over INR 37K Cr in business through the GeM portal, and the marketplace is now aiming to onboard more than 1 Lakh DPIIT-registered startups. 

As part of this push, GeM is gearing up for a key presence at Startup Mahakumbh — scheduled from April 3–5 at Bharat Mandapam in New Delhi. The event is expected to bring together 3,000+ startups and over 50,000 business visitors from across the globe, with a strong focus on sector-specific growth, public-private collaboration, and innovation beyond metro cities. 

To support this effort, GeM will set up a 150 sq. mt. pavilion at the event to onboard startups in real-time, giving them fast-track access to India’s largest public procurement ecosystem.

Inc42 caught up with Ajay Bhadoo, the GeM chief executive discussed various opportunities the platform is creating for the startup ecosystem, the impact of digitalisation of public procurement processes, and the cost reduction and efficiency strategies the government is adopting. The 1999-batch IAS officer with over two decades of experience in policy formulation and implementation across several sectors seemed upbeat about the prospects of the online marketplace.

Here are the edited excerpts from the conversation…

Inc42: The GeM is increasingly engaging with startups and MSMEs. How do you ensure that the procurement framework keeps pace with the innovation these businesses bring, particularly in emerging sectors?

Ajay Bhadoo: Aligning with its vision of inclusive socio-economic growth, the GeM has implemented a unique initiative, called Startup Runway, to help disruptive startups find the right market fit in public procurement. Launched in 2019, Startup Runway is a customised solution to improve the visibility of those innovative startups whose ideas do not fit into any of the existing product or service categories listed on the GeM.

By offering a dedicated storefront listing to DPIIT-registered startups under 14 globally recognised and nationally relevant sub-sectors, Startup Runway widens the visibility of such startups, thereby ensuring that these innovations reach the right buyer from the government.

The GeM is committed to creating a level playing field and an affirmative ground for the world’s third-largest startup ecosystem and MSEs to participate in India’s growth story. 

MSEs account for 38% of the overall gross merchandise value (GMV) transacted on the GeM. Offering a tech-powered ecosystem for public procurement, we are empowering homegrown businesses, including startups, MSEs, and women-led enterprises, to sell directly to lakhs of buyers in the government.

Inc42: The GeM has been a key pillar of India’s digital governance push. How do you see its evolving role in transforming public procurement at scale?

Ajay Bhadoo: GeM is kind of a startup experiment of the government. It clocked INR 422 Cr in GMV in FY16, and we may close FY25 with a GMV of over INR 5.3 Lakh Cr. 

Through end-to-end digitalisation and automation of each touchpoint in public procurement processes, the GeM has reduced the turnaround time in the award and delivery of government tenders. The large pool of verified vendors has ensured competitive pricing, resulting in at least 10% savings in public procurement costs. 

We have democratised business opportunities by using the end-to-end digital infrastructure, enabling pan-India sellers and service providers to conduct business directly with over 1.6 Lakh government buyers – from anywhere and at any time. 

The GeM’s initiatives like Startup Runway & Womaniya, which is another storefront for exclusive listing of product catalogues by women-led enterprises, have ensured that underserved seller groups get equal opportunities in conducting business with the government.

With over 11,000 product categories and 320-plus service categories, the GeM ecosystem is ever-expanding. More than 23 Lakh sellers and service providers have onboarded the GeM portal. Apart from the central and state governments, local-level government bodies like panchayats and cooperatives too have come into the GeM buyer ecosystem. Nearly 38% of the order value transacted on the GeM has been fulfilled by MSEs. 

Startups have secured business of over INR 37K Cr through the GeM platform. These numbers testify to our undeterred commitment to building an inclusive public procurement marketplace.

Inc42: How does GeM plan to leverage AI and other emerging technologies to improve its services and user experience?

Ajay Bhadoo: The GeM is continuously evolving to offer its stakeholders a tech-powered robust infrastructure which is easy to navigate while ensuring utmost security.

We recently migrated to the Amazon Web Services (AWS) cloud, marking India’s largest data migration activity. Migration of the GeM’s cloud infrastructure to AWS is expected to streamline procurement for buyers by offering efficient modes, rich product or service listings, price comparisons, and transparent contract management. 

Sellers will also benefit from greater visibility, access to government departments and PSUs, consistent purchase procedures, faster payments, and tools to categorise and showcase their offerings effectively. 

We are also working on creating a new, more digitised and AI-enabled platform with focus on automating the service desk and improving data analytics and dashboarding capabilities.

Our GeMAI – a virtual chatbot powered by AI and ML – provides information on the GeM but can also be used through voice command functionality in 8 languages integrated into the portal. In addition to resolving queries, the GeMAI chatbot is also now capable of issuing and tracking tickets. 

The GeM is using future-forward technologies like AI and ML to empower its stakeholders in making data-backed decisions, driving its core pillars of efficiency, transparency and inclusivity in public procurement. 

Inc42: How do you think GeM would contribute to India’s vision of a $5 Tn economy, especially in enabling digital-first governance and promoting inclusive growth?

Ajay Bhadoo: The transformation of the nation into a digitally empowered society and knowledge economy has positioned India as a global powerhouse in the digital landscape. The GeM stands at the forefront of this revolution.

We have seen a 100% year-on-year (YoY) growth through the last three fiscal years and we hope to close FY25 with a record GMV of over INR 5 Lakh Cr. The last three years have been especially ambitious, with the platform exemplifying sustained growth across all parameters. The number of orders placed daily on the GeM has more than doubled since FY21. The number of product and service categories has grown over 1.5 times in this period. 

The magnitude of procurement carried out on the GeM platform is likely to catapult it as the world’s largest public procurement portal in the near future. 

The wide variety of procurement modes and competitive e-bidding processes on the GeM have enabled government buyers to buy the right quantity at the right price, resulting in potential savings of at least 10% on their procurement plans. Imagine the spill-over welfare effect of aggregate estimated savings of over INR 1.15 Lakh Cr that the GeM portal has brought about in the last eight years. 

In a major relief to small enterprises, the GeM has also significantly reduced its transaction charges recently. Orders exceeding INR 10 Lakh will incur lower transaction charges of 0.30%, capped at a maximum of INR 3 Lakh – a significant decrease from the previous INR 72.50 Lakh. These changes have translated to estimated savings of 33% to 96% for certain order sizes. 

Inc42: Startup Mahakumbh is just a few days away. As part of the organising committee, how does GeM see this platform aiding the government’s larger efforts to promote innovation? 

Ajay Bhadoo: Startup Mahakumbh has emerged as a key catalyst in driving India’s growth towards atmanirbharta (self-reliance). It provides a unique platform for startups across the country to bring their innovation to the forefront and widen their visibility to the relevant audience. 

Sector-specific panel discussions at the thematic pavilions enable participants to gain valuable insights from industry stalwarts. By offering B2B, B2C and B2G opportunities to participating entrepreneurs under one roof, Startup Mahakumbh has turned into a vibrant hub for emerging businesses. The wide network of organisers further strengthens private-public partnership in driving India’s growth story towards a Viksit Bharat.

This year, Startup Mahakumbh will offer an opportunity for the participants to be a part of the GeM through its elevated outreach programme. We have set up a 150 Sq Mt pavilion to facilitate on-the-spot onboarding of DPIIT-registered startups. 

Senior GeM officials will also be present throughout the three-day event for interactions with the budding startup community. 

Inc42: Do you think Startup Mahakumbh is evolving into a formal pipeline for procurement, pilot projects, and long-term partnerships between startups and government bodies? 

Ajay Bhadoo: In just one year, Startup Mahakumbh has gained recognition as the world’s biggest showcase of innovation. As the presenting partner of Startup Mahakumbh, the GeM is excited to leverage this exceptional opportunity to further its goal of onboarding 1 Lakh DPIIT-registered startups onto its portal.

Our aim is to simplify the onboarding on the GeM for all the 3000-plus startups. Our team will be present at the GeM Pavilion in Hall 5 at Startup Mahakumbh to provide end-to-end onboarding support to them. 

Professional photoshoot and product cataloguing facility will be available to the onboarded startups completely free of cost so that they can kick off their journey on the GeM without any hassle. The GeM Pavilion will serve as an open platform for these startups to interact with select government buyers, further streamlining their entry into India’s largest e-marketplace for government buyers. 

The visitors can also interact with our virtual chatbot – GeMAI – and explore its various features, like multilingual voice command functionality and its ability to issue and track tickets.