Intellect Design Arena, the listed fintech product creator, has launched a new government procurement exchange platform targeted at central governments across the world, with the aim of streamlining public procurement and reducing spillages which run into trillions of dollars.
The platform will be operated by Intellect Digital Technology for Commerce (iDTC), the company's e-commerce solutions arm, which is aiming to contribute about $40 million to its parent entity in the next three years.
"According to World Bank analysts, governments spend an estimated $13 trillion each year on public contracts for goods, services, and public works i.e 12-20% of the world's GDP. As much as 25% of that is wasted in inefficient or shortsighted procurement practices. Halting this waste could free up at least $1-$4 trillion a year to put economies on a path toward green, resilient, and inclusive development," the company said in a statement.
With the iGPX product, the company is hoping to onboard central governments across the globe as clients, as well as several states and PSUs within India, CEO Debanjan Kumar told NDTV Profit.
The platform guarantees best price through rich product and services listing, price reasonability algorithms and demand aggregation.
It also promises reduction in procurement cycle time up to 95%.
iGPX is a result of extrapolating Intellect's experience of building and managing one of the largest public procurement marketplaces in the world for six years—India's Government e-Marketplace.
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