Government e Marketplace (GeM) Company Profile

Background

Overview

The Government e Marketplace (GeM) is an online platform established by the Government of India to facilitate the procurement of goods and services by various government departments, organizations, and public sector undertakings (PSUs). Launched on August 9, 2016, under the Ministry of Commerce and Industry, GeM aims to create an open and transparent procurement system for government buyers. It operates as a 100% government-owned, non-profit company under the Ministry of Commerce and Industry.

Mission and Vision

GeM's mission is to promote efficiency, transparency, and inclusiveness in public procurement. The platform seeks to eliminate outdated manual procurement systems, reduce inefficiencies, and foster a digital ecosystem that benefits both buyers and sellers. Its vision is to create a unified procurement policy that encourages behavioral change and drives reform, building an easy-to-use, fully automated platform to ensure transparency and efficiency in procurement.

Primary Area of Focus

GeM focuses on providing a digital marketplace for the procurement of common-use goods and services required by government entities. The platform offers tools such as e-bidding, reverse e-auction, and demand aggregation to help government users achieve the best value for their money.

Industry Significance

GeM has transformed public procurement in India by driving its three pillars: inclusion, usability, and transparency, and efficiency and cost savings. According to an independent assessment by the World Bank, average savings for buyers on the GeM portal are about 9.75% on the median price.

Key Strategic Focus

Core Objectives

Efficiency: Streamline procurement processes to reduce time and costs.

Transparency: Ensure open and fair procurement practices.

Inclusiveness: Encourage participation from a diverse range of sellers, including micro, small, and medium enterprises (MSMEs), startups, and women entrepreneurs.

Specific Areas of Specialization

Digital Procurement: Facilitate online procurement of goods and services.

Competitive Bidding: Implement e-bidding and reverse e-auction mechanisms.

Demand Aggregation: Combine procurement needs to achieve economies of scale.

Key Technologies Utilized

E-Bidding and Reverse E-Auction: Digital tools to enhance competitive pricing.

Data Analytics: Utilize data to monitor and improve procurement processes.

Primary Markets or Conditions Targeted

Government Departments: Central and state ministries and departments.

Public Sector Undertakings (PSUs): State-owned enterprises.

Local Bodies: Panchayats, cooperatives, and other local government entities.

Financials and Funding

Funding History

As a government-owned entity, GeM's funding is primarily sourced from the Government of India. Specific details regarding total funds raised and recent funding rounds are not publicly disclosed.

Utilization of Capital

The capital is utilized for:

Platform Development: Enhancing and maintaining the GeM portal.

Capacity Building: Training and onboarding sellers and buyers.

Operational Expenses: Managing day-to-day operations of the platform.

Pipeline Development

Key Initiatives

Womaniya on GeM: Launched on January 14, 2019, this initiative enables women entrepreneurs and self-help groups to sell products directly to government departments.

Startup Runway: Introduced in April 2019, this program facilitates startups in selling innovative products and services to government users.

Target Conditions

Inclusive Growth: Promote participation from underrepresented groups.

Digital Transformation: Encourage the adoption of digital procurement processes.

Anticipated Milestones

Expansion of Seller Base: Increase the number of registered sellers, especially from MSMEs and startups.

Enhanced Platform Features: Introduce new tools and functionalities to improve user experience.

Technological Platform and Innovation

Proprietary Technologies

GeM Portal: A unified digital platform for procurement.

GeM Tender Process: A competitive bidding system for transparent procurement.

Significant Scientific Methods

Data Analytics: Monitor and improve procurement processes.

Machine Learning Algorithms: Detect and prevent fraudulent activities on the platform.

Leadership Team

Key Executives

Shri Mihir Kumar: Chief Executive Officer (CEO) of GeM.

Sh. Sunil Barthwal: Secretary, Department of Commerce, Ministry of Commerce & Industry, and Chairperson & Nominee Director, GeM.

Sh. Alkesh Kumar Sharma: Secretary, Ministry of Electronics and IT, Government of India, and Nominee Director, GeM.

Sh. Sanjay Prasad: Additional Secretary, Department of Expenditure, Ministry of Finance, Government of India, and Nominee Director, GeM.

Sh. Amitabh Kumar: Joint Secretary, Department of Commerce, Ministry of Commerce & Industry, Government of India, and Nominee Director, GeM.

Professional Backgrounds and Contributions

Shri Mihir Kumar: A distinguished officer of the 1996 batch of the Indian Defence Accounts Service (IDAS), currently serving as the CEO of GeM.

Sh. Sunil Barthwal: Secretary, Department of Commerce, Ministry of Commerce & Industry, and Chairperson & Nominee Director, GeM.

Sh. Alkesh Kumar Sharma: Secretary, Ministry of Electronics and IT, Government of India, and Nominee Director, GeM.

Sh. Sanjay Prasad: Additional Secretary, Department of Expenditure, Ministry of Finance, Government of India, and Nominee Director, GeM.

Sh. Amitabh Kumar: Joint Secretary, Department of Commerce, Ministry of Commerce & Industry, Government of India, and Nominee Director, GeM.

Competitor Profile

Market Insights and Dynamics

The public procurement market in India is substantial, with the government spending a significant portion of its GDP on procurement activities. GeM has emerged as a central platform, streamlining procurement processes and offering a transparent and efficient system for government buyers.

Competitor Analysis

While GeM operates in a unique space as a government-mandated procurement platform, it faces indirect competition from traditional procurement methods and other e-commerce platforms that cater to government needs. However, GeM's focus on transparency, efficiency, and inclusiveness sets it apart in the market.

Strategic Collaborations and Partnerships

Key Collaborations

Womaniya on GeM: An initiative to enable women entrepreneurs and self-help groups to sell products directly to government departments.

Startup Runway: A program facilitating startups in selling innovative products and services to government users.

Impact of Collaborations

These collaborations have expanded GeM's reach, promoting inclusivity and supporting underrepresented groups in the procurement process.

Operational Insights

Strategic Considerations

GeM's strategic focus on efficiency, transparency, and inclusiveness has positioned it as a leader in public procurement. Its initiatives to onboard MSMEs, startups, and women entrepreneurs have diversified the seller base, enhancing the platform's competitiveness and fostering economic growth.