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How startups and SMBs can sell to Indian Government without going through the tendering process

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“NEVER DREAM OF BECOMING SOMETHING, IF YOU DREAM, DREAM OF DOING SOMETHING.”Shri Narendra Modi Hon’ble Prime Minister of India

We all know that the startup ecosystem is buzzing in India and there has been an exponential growth via startup hubs, incubations centres etc, a lot of this have been promoted  by government of India with programs like Startup India,  StandupIndia, MakeInIndia, Digital India as well as the huge sops and financial incentives which are offered by the Finance Ministry, when it comes to listing of startup which includes exemption from taxation, status of being a startup extended to 10 years from the date of inception.

Still, we find most startups are hesitant while selling to the government or Public Enterprises. The fact that the myth of tedious tendering process and mandatory requirement or the startup will have to show up 3 or 5 years balance sheet, for them to be eligible. Or they have to submit bank guarantees and furnish the huge amount of earnest money. But things have changed for the better via Startup India, MakeinIndia, Digital India initiatives of the government of India.  Today entrepreneurs have access to Government e-Marketplace (GeM)  a one-stop portal to facilitate online procurement of Goods & Services required by various Government Departments / Organizations / PSUs. GeM aims to enhance transparency, efficiency, and speed in public procurement. It provides the tools of e-bidding, reverse e-auction and demand aggregation to facilitate the government users to achieve the best value for their money.

The purchases through GeM by Government users have been authorized and made mandatory by the Ministry of Finance by adding a new Rule No. 149 in the General Financial Rules, 2017.

Advantages of GeM for Startups’ are huge, in our own experience from the startups that we have run in the past or helped who have used GeM Portal effectively. We have seen it give Indian startup & SMBs level playing field against foreign MNCs. Now Indian innovation can fight against well-established companies from USA and China effectively. The innovation in India in software products are at par with the best in the world. GeM gives Startup in India a platform against the MNCs and still come out a winner with their MakeInIndia DNA.  Indian products are as innovative as the MNCs from silicon valley or the large unicorns of China. We have unique experience in one such case where two biggest competitors for an Indian Security Product Startup were Citrix and VMware and the startup was able to beat them on their own game, thanks to GeM portal. They were able to deliver better value to the customers at one-tenth the cost of the multinational giants for the same product. GeM portal gives Startups access to all government departments and public sector undertakings without the need of having political connections or lobbying influence.

As per our experience, GeM portal is a Godsend for entrepreneurs and can be accessed by any startup, wanting to sell their products or for productizing their service offerings like product accelerators. It will be a great boom for Indian startups to build innovative world-class products and be part of the India growth story.

GeM portal acts as a  force multiplier for any startup.  It requires minimal marketing costs and maximum visibility. This is what startups need when they have a great product but they are seeking credibility. GeM portal is a very transparent mechanism which is driving innovation in Indian product companies. If you are a startup owner and thinking that you can’t sell to the government you may be pleasantly surprised.

We recently met an ayurvedic SMB who even has a patent for the powder formulation.  It is FDA approved that have excellent remedies for helping Dengue, AIDS, and Cancer patients. We advised them to list their product on GeM portal. The founder of the company was surprised and delighted to know that the Government of India is offering such a service; here it prompted us to blog on this and increase awareness.

There are significant benefits of getting your products listed on GeM Portal and most often startups do not even consider government as one of their main clients or sources of revenue. You would be surprised by the below GeM portal statistics.

SOURCE: https://gem.gov.in/

With GeM, there is no complex tendering process involved and there is an assigned budget that must be spent on #MakeInIndia startups and small to medium businesses.  Please note that listing your products on GeM marketplace is lengthy and time-consuming. Things have changed substantially for the better, though there may be some hiccups when it comes to registering your product listed on the GeM portal. Secondly,  we believe that the process should be lengthy. We cannot have a system where unverified and untested products are allowed to go in. We recommend improvements in the process to have something along the lines of DoD DIUX. It is a golden opportunity because it comes with a huge amount of recognition.

Lastly

“STARTUP IS THE PROCESS WHICH STARTS WITH A NEW THINKING AND COMMITMENT TO DO SOMETHING DIFFERENT.”

Shri Suresh Prabhu Hon’ble Minister of Commerce and Industry

Who are we and how can we help you?

We, IdeaClicks, are an Artificial Intelligence based  marketing agency that focuses on digital design solutions, understanding the soul of your business, assessing the current digital presence of your business, outlining a right set of Tools that would paint a beautiful online picture of a business. In simple words, we use the right AI tools and technologies that can bring the value of AI to your business.
Using our previous experience of scaling and selling our earlier startup, we are now helping a lot of newer startups to better market themselves in US and India markets, to venture capitalists,  and to end customers. We are also enabling them to have an effective digital presence in India on GeM and on Google My Business. You have scissors and you can cut your own hair,  but a professional touch always helps. To grow your business, get qualified leads, expand the customer base, enter new markets, get in touch with us at [email protected]


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