‘Asset light, tech heavy’ is how Solv India is redefining B2B commerce for MSMEs

Being a full-stack online without inventory B2B Commerce market for MSMEs, Solv India develops disruptive and transformative solutions for small businesses. The Standard Chartered-backed digitally enabled company had announced the commercial launch of its platform in Q4 2020. It claims to have supported 50,000 KYC verified. MSMES with over 30% month-on-month growth in gross transaction value (GTV) on the platform in the last six months, with an added value of around Rs 250 crore of business.
In an interaction with ET online, its CEO Amit Bansal says that the Bengaluru-based company is focused on unleashing the boundless energy and passion for growth of MSMEs by building a technology-backed ecosystem. Edited excerpts:

ET: Solv aims to drive a business model that reflects the innovative approaches of companies like Airbnb and Uber. Could you explain to us what and how you are different from traditional suppliers?
Amit Bansal
: Solv’s business model reflects the innovative approaches of companies that leverage technology to create a platform that directly connects buyers and sellers. Like Airbnb and Uber, which transformed their respective industries by eliminating middlemen and offering more efficient, transparent and scalable solutions, Solv is redefining B2B commerce by enabling small and medium-sized businesses (SMEs) to access a broader market with ease and flexibility.

The asset-light model makes Solv more flexible, agile and scalable compared to traditional providers, which rely heavily on heavy infrastructure and huge capital in fixed assets. With the zero inventory approach, Solv reduces its operating expenses and provides more specialized and effective services for MSME customers.
Solv takes the innovative platform-based approach and tailors it to the specific needs of the B2B landscape in India, offering a more accessible, efficient and empowering solution compared to traditional providers.
ET: How does Solv’s focus on flexibility and adaptability support the growth of MSMEs in a diverse market?
AB:
India’s MSME sector is very heterogeneous and companies vary greatly in terms of size, industry and geographical location. Given the wide range of industries, regional differences and unique challenges faced by MSMEs across the country, Solv’s adaptable platform enables 400,000 incorporated businesses to operate more efficiently and respond quickly to changing market conditions. India’s consumer B2B market is a $1 trillion market. It is not only diverse in terms of industries but also in regional economic conditions and consumer behavior. For example, the grocery market is worth $400 billion and is so diverse that preferences change approximately every 100 kilometers. Solv allows MSMEs to access their network of over 6000 sellers and serve these local markets given the vast reach and customers they have onboarded across the country. Solv’s platform is based on scalable technology that can easily adapt to different transaction volumes. Additionally, the platform’s ability to respond to real-time data ensures that MSMEs can make informed decisions quickly, further driving their growth in a competitive market.

Simplified access to credit is an important advantage that Solv offers its clients. As a marketplace, Solv offers its customers the option to opt from a wide range of interest rates from 9% to over 20%, providing them with adaptable credit options, including instant credit and digital loans based on business performance. Provides MSMEs with access to working capital to grow.

ET: India’s B2B e-commerce The sector is very diverse. How does Solv’s model address the specific needs of this diverse market?
AB:
India’s B2B e-commerce landscape has a wide range of businesses, from small kiranas to large enterprises. Solv’s asset-light model gives them access to nearly infinite SKUs (stock keeping units) of products from across the country in 6 categories to meet demand in the local market. Solv can offer these options across multiple dual-fragmentation consumer categories, including groceries, apparel, home furnishings, footwear and toys, and sports, among others. An extensive supplier network of over 6000 players and multiple logistics partner networks ensure competitive rates and hassle-free deliveries across the country. Operations in this varied market require great knowledge and adaptation of solutions to each of them.

Solv also aims to help small and large businesses accelerate growth in India’s B2B community. To support this, it also helps MSMEs avail credit, which is available with a tenure of 15 to 90 days at an affordable interest rate, helping business owners avoid any liquidity challenges that can hinder your growth. By connecting businesses directly on the platform, Solv eliminates middleman costs, increases profit margins, and drives business growth.

ET: What emerging trends in B2B e-commerce do you see as having the most impact and how does Solv plan to take advantage of these trends?
AB:
One of the most impactful trends in B2B e-commerce is the growing use of AI and machine learning to improve decision making and offer personalized experiences to customers. Companies are adopting these technologies to optimize operations, increase efficiency and personalize their offerings. Solv is taking advantage of this trend by fully integrating AI and machine learning into its platform. This allows Solv to create customized financial solutions that fit the unique needs of each business.

With simplified, digitized cataloging for retailers, customers can make faster, better-informed decisions. Additionally, the platform is designed to support omnichannel engagement by integrating multiple touchpoints into a cohesive experience. It also supports businesses in managing their own omnichannel strategies by offering tools that integrate online and offline sales channels, ensuring customers can seamlessly transition between different modes of engagement.

ET: Tell us about the company’s future plans and the focus areas you intend to pursue in the near term.
AB:
Solv is focused on helping MSMEs improve their livelihoods using technology as the backbone, we are currently working on identifying areas of opportunity to implement next generation technologies for faster decision making and improving business processes.
Solv is present in over 400 tier 2 and 3 cities. We plan to double our reach in the coming years.

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