Govt’s e-marketplace aims to pip Amazon, Flipkart in transactions
The government’s public procurement website, GeM (Government e-Marketplace), through which it buys goods and services for its consumption, aims to record more transactions than e-commerce giants Amazon India and Flipkart put together.
GeM, which records transactions worth $1.5 billion at present, aims to raise this figure to $25 billion in three years. Amazon India and Flipkart, including Myntra, record online transactions of about $12 billion at present. “GeM will be doing transactions worth $25 billion in three years and $100 billion in seven to eight years,” trade minister Suresh Prabhu said on Wednesday while inaugurating the National Mission on GeM for increasing awareness among buyers and sellers.
However, it is unlikely that government will be able to list GeM in the equity market anytime soon as it is registered as a not-for-profit company, though Prabhu speculated about its probable valuation.
“GeM will be a very valuable possession for the government. If we list it, we don’t know how much value we will get,” he said.
“Making profit is not the mandate of GeM as it is registered as a Section 8 company. However, in future, if the government so wishes it has to change the nature of the company into a forprofit one,” a GeM official said under condition of anonymity.
The government also intends to allow private firms to buy on the government e-marketplace platform, said the minister.