AI and ML Transforming Indian SMEs: A Potential Economic Game-Changer

AI and ML can boost Indian SMEs' GDP contribution from 30% to 50% while increasing employment from 110 to 175 million, especially in smaller cities. SMEs seek AI for production, raw material procurement, and more. OfBusiness supports these efforts through platforms like BidAssist and Nexizo.AI, aiming for a USD 1 billion IPO.

Artificial intelligence and machine learning are set to revolutionize small and medium enterprises (SMEs) in India, potentially elevating their GDP contribution from the current 30% to 50%, according to OfBusiness, a b2b commerce and fintech startup. This transformation is also expected to increase employment figures from 110 million to 175 million, particularly benefiting tier-2 and tier-3 cities, positioning this development as a significant economic game-changer.

SMEs are keen to embrace AI and ML for improving business operations, enhancing production capabilities, managing raw materials, and optimizing time management. Platforms like 'BidAssist' provide essential information about government tenders, streamlining opportunities through keyword sorting. Meanwhile, 'Nexizo.AI' offers real-time commodity pricing insights, crucial for SMEs. OfBusiness' financial arm, Oxyzo, supports SMEs with structured financial solutions through its 'Purchase Financing' model, emphasizing the role of AI-enabled platforms in scaling up businesses.

Connectivity remains crucial, facilitating transport of SMEs' raw materials and finished goods across India and internationally. OfBusiness, with its extensive network across 26 states and seven UTs, aided about 2-million SMEs in logistics, both domestic and export, to 15 countries. The company plans a USD 1 billion IPO by 2025-26 fiscal year, leveraging India's growing prominence as a global business hub, amplifying its path towards becoming the third largest global economy.

(With inputs from agencies.)