NEW DELHI: Technology powered by artificial intelligence and machine learning can increase contribution by small and medium enterprises (SME) to India’s GDP to about 50% from the present 30%, according to B2B commerce and fintech startup OfBusiness. Artificial intelligence and machine learning can also enhance employment from 110 million to 175 million, particularly in tier-2 and tier-3 cities, it said.
“AI and technology transformation can scale-up SMEs production and then reach to 50% contribution to the GDP from the current 30%, and enhancing employment from 110 million to 175 million, particularly in tier-2 and tier-3 cities, would not be difficult. This would prove to be a major game-changer for the Indian economy,” OfBusiness said in a statement.
It said most SMEs are looking forward to adopting AI & ML in their business operations to upscale production.
AI is also helpful towards the procurement of raw materials, connectivity, distribution network, innovative product solutions, debottlenecking, training of workforce, waste management, and more importantly, time-management, the company said.
“Access to AI-enabled platforms for securing business opportunities, access to ‘purchase financing’ model for easy capital solutions, leveraging connectivity across India for raw-material and finished goods supply, aligning with educational institutions for operational efficiencies and debottlenecking, and adopting global transaction systems and procedures is going to be the key for SMEs while scaling up their businesses,” said co-founder and CBO Nitin Jain.
He emphasised the SMEs need for AI-enabled platforms like ‘BidAssist’ that provide information about 5 million government tenders in different categories, which can be sorted as per the requirement by incorporating relevant keywords.
AI-enabled platforms like ‘Nexizo.AI‘ help SMEs with real-time commodity prices of products, and provides them with specific opportunities by segregating the tenders as per their businesses, the statement said.
“OfBusiness financial arm – Oxyzo – has devised ‘Purchase Financing’ model to help SMEs obtain structured financial solutions,” he said.
Connectivity is another key area that helps SMEs transport their materials not just across India, but also overseas, he said, adding, in all this, educational institutions, particularly engineering colleges, management colleges and institutes of human resources, need to be aligned with these enterprises to resolve critical areas of concern.
The company claimed that its connectivity in 26 states and seven UTs in India is helping about 2-million SMEs transport raw-materials and finished goods safely.
In 2024, OfBusiness engaged with over 4,000 transporters from across the country and delivered 170,000 consignments, it said.
OfBusiness also exports materials to 15 countries, including Australia, UK, France, Dubai, Germany, Brazil, Malaysia and Vietnam.
The company is also planning a $1 billion IPO in the 2025-26 fiscal.
“There is no doubt that India is emerging as a major business market for the world. And this also gives a strong foothold and a roadmap for India to be the third largest global economy, and reach the $10 trillion magic number much earlier than expected,” Jain said.
