OfBusiness launches a new app for MSMEs and other top stories
From the launch of a new app by OfBusiness, SMEs' contribution to the Indian economy, to how a hemp business is changing customer mindsets—here's what SMBStory covered this week.
The rise in the prices of raw materials has been one of the major challenges faced by MSMEs.
Small business owners often have to rely on distributors who charge huge fees. Also, they might not understand the fair market value and be vulnerable to middle-men. Orders are occasionally delayed or lost en route because it can be difficult to track the delivery.
This week, SMBStory covered the launch of a new app by a B2B unicorn, , which aims to address these issues.
New app to help MSMEs
Image credits: Winona Laisram
Ofbusiness launched a new app to help micro, small, and medium enterprises (MSMEs) procure raw materials and gain access to credit.
The app offers a comprehensive solution that enables business owners to source raw materials within the app, compare prices with vendors across India, manage orders, and track the live location of the shipment.
Through this app, OfBusiness will act as an aggregator for buyers, procuring raw material from the manufacturer and shipping it to the buyer without any collateral.
Nitin Jain, Co-founder, OfBusiness, says, micro-enterprises form the major chunk of the MSME ecosystem, and the app aims to bolster them with a smooth supply chain system.
Since its inception in 2015, the platform has catered to the needs of over 700,000 SMEs across 30 diverse business sectors. Jain attributes the success of the platform to its 200-strong sales team, which has played a pivotal role in ensuring seamless supply chain operations for SMEs.
The app supports 10 regional languages and the built-in AI allows the user to interact in conversation. The business owner can track the live location of the shipment, which will also help them plan their operations better.
The app will enable OfBusiness to expand its services by delving deeper into the supply chain ecosystem and penetrating Tier III and IV towns, targeting micro-enterprises with a revenue target of around Rs 35,000 crore for FY 23-24.
Other top picks of the week
Namrata HempCo
The misconceptions about hemp and marijuana have grappled Indian consumers for a long time. Derived from the same plant Cannabis sativa, they are still poles apart.
Both contain THC (tetrahydrocannabinol—the psychoactive element that gives you a ‘high’) and CBD (cannabidiol—a beneficial oil extracted from the leaves, stems, and flowers).
In India, Uttarakhand is the only state to grow industrial hemp plants at a commercial scale. They are CBD-rich, and the THC content of their extracts is often less than 0.3%.
Nonetheless, the hemp industry is yet to make a dent in the Indian economy as myths and stringent government regulations surrounding its cultivation.
Despite the hurdles, Bengaluru-based , which operates a skincare brand Satliva and a bioplastic manufacturing company called GreenLeaf Bioplastics, is trying to change the narrative.
Founded in 2016 by husband-wife duo Namrata Reddy and Harshavardhan Reddy, realising the plant's potential in other areas besides skincare, the company is now expanding into fibre and bioplastic manufacturing.
Scope of business for SMEs
In the past few decades, the MSME sector has become active and dynamic in India.
It is actively expanding its sphere of influence across numerous economic sectors, creating and providing a wide variety of goods and services to satisfy domestic and international market demands.
With the SMEs and manufacturing sector contributing significantly to the GDP of India, there is a potential to increase their contribution to employment to over 50% over the next decade.
It is also vital for informal SMEs that are not registered to be made part of the formal SME ecosystem. The growth incentives in the form of privileges and direct benefits for SMEs will encourage registration and participation in the growth opportunity.
Edited by Suman Singh
