Kirana stores embrace digital transformation, says Redseer study

India’s traditional retail market, dominated by over 15 million kirana stores, is undergoing a significant transformation. A new study by Redseer Strategy Consultants reveals that the B2B kirana (groceries) market — which has long relied on fragmented, traditional trade-distribution models — is embracing digital innovation through eB2B (e-commerce-led Business-to-Business) platforms, fuelling rapid growth and operational efficiency in the sector.

The report titled ‘B2B e-commerce Opportunity in India’ outlines how the rise of digital solutions is reshaping the market that has historically faced challenges. Kirana stores, especially in remote and rural regions, are increasingly turning to eB2B platforms for better procurement management, access to formal credit and superior customer service.

Outpacing competitors

The study also highlights how udaan, India’s leading eB2B platform, has solidified its position as the preferred partner for kirana stores in Bengaluru and Hyderabad, significantly outpacing other competitors in the market. The findings highlight udaan’s remarkable growth, capturing a significant market share and continuing to expand and strengthen its position, while other eB2B players have been in decline.

“The Indian B2B kirana market is on the cusp of a remarkable transformation as digital platforms revolutionise traditional trade practices. Our report highlights strong growth driven by digital adoption, with eB2B solutions reshaping supply chains and improving efficiencies. Kirana stores now have unprecedented access to products and financial services, marking a fundamental shift in how businesses operate and thrive in the coming years. The future of this market is promising and poised to redefine retail in India,” said Anil Kumar, Founder and CEO of Redseer Strategy Consultants, in a statement.

“udaan is transforming the future of eB2B retail by empowering kiranas and small retailers with unmatched access to a wide variety of quality and affordable products, and credit while leveraging technology,” said Vaibhav Gupta, Co-Founder and CEO, udaan.

“Our rapid growth in Bengaluru and Hyderabad is just the beginning. We are committed to revolutionising the eB2B retail landscape across Bharat, expanding into new clusters, and driving an efficient and profitable growth for millions of small businesses.”