Commodity Marketplaces striking gold

Commodity marketplaces struck gold this year. The segment tapped into the improving demand for raw materials amid China’s recent relaxing of COVID restrictions and Europe’s push for improving energy efficiency.

What are they? Commodity marketplaces are companies trading between businesses in commodity markets such as steel and agriculture. Examples include:

• Zhaogang – large scale steel trading marketplace for businesses
• Infra.Market – a real estate material procurement marketplace
• Bijak – marketplace for agricultural commodities

Commodities are still a small segment, valued at $11.5B in combined enterprise value, but much of that value has been created recently. Since 2017, these marketplaces have increased 5.8x in enterprise value and 2.6x since 2020.

Much of this recent growth has been due to marketplaces tackling 4 high-level functions that typically made it hard to operate in the space: supply and demand aggregation, procurement tools, financing options and logistics enablement.

On Dealroom.co, we’ve curated a landscape of 40+ commodity marketplaces ranging across sectors such as Fintech, Agritech, B2B, and more. Access the full landscape here.

Combined Enterprise Value of Commodity Marketplaces

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More on Commodities Marketplaces – check out our B2B Marketplaces 2022 Report

In our latest marketplace report, we dive into how B2B Marketplaces are one of the most resilient niches in tech, and their potential in different markets and business models.

Access the full report, made in partnership with Adevinta Ventures, to discover what’s driving one of B2B marketplaces’ best years for growth.