Mumbai-based B2B online platform Tammy Trade is trying to create a research, analytics and innovation driven e-marketplace to improve business prospects, mitigate risks and ensure growth
Finding an e-commerce space for B2B transactions is not difficult as there are plenty of options on the market. However, the folks at Tammy Trade believe it is the end-to-end transaction-based business model that gives them an edge.
Tammy Trade is an online B2B marketplace that offers quality products at transparent prices from verified global and Indian manufacturers and suppliers.
Priyesh Patel, founder and CEO at Tammy Trade, says: “We embarked on research before zeroing in on an idea. We focused on differentiators rather than commonalities. From the research and market understanding came the Eureka moment, the creation of an online platform to obtain best prices for sellers – farmers, producers and manufacturers – while giving buyers the freedom to choose from a verified universe of sellers.”
Priyesh, 35, and his partner, Bikash Agarwala, 37, studied in Wales, UK. When they got back, they decided to start a venture with a unique focus – a technology-driven, end-to-end B2B platform that would cater to bulk trading in specific verticals with the prime objective of empowering SMEs.
Tammy Trade was formed in July 2015 and the website was launched in October 2016. The company, currently bootstrapped, has a representative office in Czech Republic, and the network is being extended to other countries in Europe, and across the Middle East and South East Asia.
“Our research included an extensive study of the bulk commodities market and the findings proved multiple shortcomings. Ever-increasing overhead charges, costs not in line with returns, incomplete transactions or the time lag for processing were some of them,” Priyesh says.
To combat these problems, Tammy Trade decided on a specific business model – it would serve as an e-marketplace of verified sellers and buyers. So Tammy Trade connects manufacturers to wholesalers/dealers anywhere in India or globally. The product segments for bulk buying and selling on the online platform include agro-commodities, handicrafts, lifestyle products and chemicals.
Setting up a unique B2B marketplace rather than a platform similar to existing online directories was one of the initial challenges.
But the Tammy Trade family is working on it. The firm also provides support in terms of insurance, logistics, packaging and quality checks, and a working capital loan through a finance partner.
The Mumbai-based company has 40 professionals on its rolls. These include two other co-founders: Kamal Kishore Sharma, 50, and Dr Abhijit Roy, 46, who have worked for more than 20 years in diverse verticals and bring to the table a wealth of management experience. Santosh Menon, 45, a director at Tammy Trade, is an avid supply chain and business development professional with a track record of over 20 years in manufacturing, retail, QSR and e-commerce.
Together, they’re trying to create a research, analytics and innovation driven e-marketplace to improve the predictability of doing business, mitigate business risks and ensure growth and profitability for everyone.
The company claims that their current gross merchandise value has crossed over Rs 15 crore till date. The revenue model is fee-based; they charge a fee for every transaction executed on their platform.
Tammy Trade uses offline and online media marketing strategies to target their customer base. Their customers include suppliers, manufacturers, wholesalers, and exporters of agro-commodities, and lifestyle and office supplies.
A report from SPO India states that the Indian B2B market is currently worth $300 billion, and is estimated to grow to $700 billion by 2020. There are 4.8 crore SMEs that need to secure bulk supplies, a market much bigger than B2C. Currently, China, Japan and the US are the biggest drivers of the B2B e-commerce market. However, some of the big players in India include Amazon Business, Power2SME, IndustryBuying and Bizongo. Many more startups are joining the league.
The founders are aware and acknowledge that there are many players in the B2B e-commerce space.
“Most of them are not technologically enabled for end-to-end transactions. They function more like data banks and directories, rather than online deal facilitators,” Priyesh says.
Inspired by the promise of a Digital India, the founders wish to encourage “Make In India” companies.
Tammy Trade is clear that it wants to empower SMEs and larger players from India to trade globally. And grow along with them.