The growing need for digital service procurement as 2022 IPO-bound companies look for digital expansions

Digital services have become a necessity for sustaining already established businesses and developing a strong foundation for IPO bound businesses. Its importance has expanded exponentially, as the medium to penetrate different segments which earlier seemed inaccessible. During contemporary times,  pandemic induced lockdowns have nudged people to spend more time on digital mediums making it an effective information exchange junction.

Why businesses opt for IPO?

The strategic choice of a business to opt for IPO is usually to raise funding from the public and investors to expand its business and explore growth possibilities in new dimensions or due to competition, to stay ahead and relevant in the market. There can be many other motivators that could lead to an IPO. But the businesses going public need a very strong forward-linkage to sustain and carry their growth trend. Hence, reduction in cost but a smooth relation with the target clientele base becomes a necessity and this is where the connection with the target consumer/clientele groups becomes of utmost importance. The growth of any business is contingent on its consumer base, hence the first point of cost-effective contact that it could initiate is through digital means.

Digital services as a growth strategy

For digital services, including social media marketing, graphic designing, SEO marketing services, app development, web analytics and efficient use of ever-evolving technology such as AI-Artificial Intelligence, could act as a game-changer when utilised efficiently. All these services help in establishing a large consumer base by becoming more accessible through technology, operating on top of supply chain dynamics, diversifying its operating strategy to become a fulfilment platform rather than constraining itself to just a few domains. Digitisation of business provides an enabling environment as it eases the working operation of the business due to increased and instantaneous visibility of business procedures, and cost reduction (by a factor of 70-80% for B2B businesses).

Successful E-procurement strategy and growth trend of businesses

The past year has proven the might of IPO-bound businesses, as they collectively raised around 1.4 lakh crores and the grass is anticipated to be greener in 2022 as more than 30 Companies, including LIC, Ixigo, Ola, Byjus, OYO are aiming to launch their IPO in 2022, and as many as 25 companies have been approved to go public. 

The list of successful businesses is never-ending which has prompted many others to enter into the competition. The freshly brewed Indian Unicorns and Decacorns, who have achieved the status through IPOs and other crowdfunding sources are going to be the hub for digital service and exchange of digital procurement with new opportunities being created through robust use of technology. 

The new SAAS based services such as Urban Company, Razorpay and Unacademy have had a profitable run and have sustained their growth. Many of these successful startups have opted for IPO with few hits and misses, but the most prominent gainer from the IPO includes one 97 communications (Paytm), Zomato, both turned out to be the largest IPOs of India. Another success story of the Startup landscape in India is Nykaa- the beauty and wellness startup that cannot be ignored. The success of Nykaa was digitally driven, before it issued an IPO, it went for a huge digital campaign to attract a large consumer base which helped in making Nykaa receptive when the business went public.

The established startups are getting good competition from the upcoming ones like Expand My Business which is a digital services marketplace and provides service discovery, assists end-users to make an informed decision and further bridge the gap between execution and delivery of the project within the stipulated timeline. The company’s aim is to become a one-stop solution for businesses for digital needs and not only find a service provider easily but also to become the delivery partner for them. The most remarkable effect of this concept is  “inclusive growth” including the unorganised procurement industry into the organised sector, streamlining it in a way that it empowers both the services providers and businesses.

The article has been written by Nishant Behl, Founder, Expand My Business