15 Mn Kirana Stores Taking Up Digital Innovation Through eB2B Platforms

Bengaluru: Over 15 million kirana stores in India, long relied on fragmented, traditional trade-distribution models, are embracing digital innovation through eB2B (ecommerce-led business to business) platforms, fuelling rapid growth and operational efficiency in the sector, a report said on Wednesday. India’s private consumption is growing rapidly, with a compound annual growth rate (CAGR) of 10.4 per cent from FY18 to FY23. The retail market is expected to reach Rs 116 lakh crore-Rs 125 lakh crore by 2028, driven by rising incomes and shifting consumer preferences.

Keeping this in mind, kirana stores, especially in remote and rural regions, are increasingly turning to eB2B platforms for better procurement management, access to formal credit, and superior customer service, according to the report by Redseer Strategy Consultants.

The report highlighted how the rise of digital solutions is reshaping the market, which has historically faced challenges.

“The Indian B2B kirana market is on the cusp of a remarkable transformation as digital platforms revolutionise traditional trade practices,” said Anil Kumar, Founder and CEO of Redseer Strategy Consultants.

The report highlights strong growth driven by digital adoption, with eB2B solutions reshaping supply chains and improving efficiencies.

“Kirana stores now have unprecedented access to products and financial services, marking a fundamental shift in how businesses operate and thrive in the coming years. The future of this market is promising and poised to redefine retail in India,” Kumar added.

The study also highlighted how udaan, India’s leading eB2B platform, has solidified its position as the preferred partner for kirana stores in Bengaluru and Hyderabad, significantly outpacing other competitors in the market.

Many kirana stores, which previously relied on informal credit arrangements, now have access to formal financing options through eB2B platforms. This access to credit allows retailers to expand their product range and improve cash flow management.

While traditional retail channels still dominate India's essentials market, the rapid growth of digital B2B solutions is likely to capture a larger share in the coming years, the report mentioned.