Barter Market In India Remains 'Fragmented And Informal,' Says BXI's Viral Thakker

While India was an early adopter of the ancient system of barter, the country's current market remains "fragmented and informal," according to Viral Thakker, CEO and Founder of BXI - Barter Exchange of India, a structured barter marketplace for Micro, Small, and Medium Enterprises (MSMEs).

Thakker noted that India's barter market is valued at approximately Rs 8,000 crore, a stark contrast to the United States, where it is a regulated industry worth $14 billion with over 350 digital barter companies.

"That’s the gap BXI is working to fill," Thakker stated. He added, "We are India’s first and only member of the International Reciprocal Trade Association (IRTA), bringing global standards, structure, and scalability to barter."

Modernising Barter For MSMEs

Thakker highlighted that BXI is modernising barter to suit MSMEs, making it tech-enabled, GST-compliant, and scalable. The system allows businesses to transact using trade credits instead of cash, which helps them conserve cash, increase their market reach, and unlock growth without financial strain.

On the role of trade credits, Thakker said, "Trade credits are the backbone of BXI. They help MSMEs conserve cash for critical expenses, monetise idle stock or services, and expand reach to new customers."

Since its launch in January 2021, BXI has grown into a digital marketplace with automated KYC, ROC integration, escrow-secured payments, and GST invoicing. The platform has completed barter transactions worth over Rs 25 crore, exchanged over 10 lakh units, and currently serves 300+ verified brands across 100+ cities.

Impact On Tier 2 And Tier 3 Cities

Thakker pointed out that structured barter is "extremely significant" for Tier 2 and Tier 3 cities that face liquidity challenges.

"These regions have capable businesses but face liquidity challenges," he noted.

An example cited was Pune-based FMCG brand Nilon’s, which used BXI to secure over Rs 1 crore worth of advertising on a national multiplex chain in exchange for ketchup supply, gaining national visibility without a cash outflow.

Thakker remarked, "For regional players, it’s a chance to compete on a bigger stage."

Similarly, Orchid Hotel used Room Nights to procure media and supplies for their hotels pan India.

Thakker emphasised that trust and compliance are ensured through strict KYC and ROC verification of all members, including checks on GST filings and turnover.

"Trust is critical," Thakker affirmed. "Every member undergoes strict KYC and ROC verification... All transactions are escrow-backed, GST-invoiced, and fully traceable."

This structure, he concluded, removes the informality traditionally associated with barter.