Reports Sunday (June 29) said Alibaba’s new platform, the trade facilitation center (TFC), a B2B digital platform to connect small businesses with banking logistics and other services, officially launched in India. Reports are placing the TFC in the context of the nation’s ongoing Make In India campaign, similarly launched to strengthen SMEs’ competitive standing in the country.
“The TFC will allow SMEs to expand their operations throughout India and beyond, said Alibaba channel director Bhushan Patil in a statement.
According to reports, Alibaba’s latest venture is an expansion upon earlier SME services in India, which provided an online platform upon which small businesses could connect with each other, though did not offer robust trade and processing services. But through the TFC, Alibaba has connected with other SME service providers in the country, including MYPACCO, based in Mumbai. The partnership brings MYPACCO’s freight, customers clearance, and warehousing solutions to businesses on the TFC platform.
“With the TFC, small businesses can concentrate on what they do best and the rest can be taken care of by us,” said MYPACCO CEO and co-founder Vinay Bhartia. “The platform proposes to ultimately achieve greater participation for India in the global economy.”
Alibaba’s previously announced partnership with ICICI Bank will also come into play with the new B2B platform as a way to connect small businesses with financing.
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Another aspect of the TFC push is to strengthen SMEs’ ability to conduct cross-border trade. While MYPACCO will aid with customs processing logistics, Alibaba has also reportedly brought in SGS to offer verification, certification and inspection services to ease the friction of exporting goods and services.
