Recruit resellers, distributors and system integrators in India and South Asia.
South Asia is four markets with very different conditions. India's IT channel is large, regional and price-conscious, and many of its distributors are appointed for the neighbouring countries too. Sri Lanka's trade runs through a small number of Colombo firms. Pakistan and Bangladesh run on local agents and personal relationships, with foreign exchange to plan around. For a B2B company planning India market entry or a wider move into South Asia, the partners you choose in each country decide which doors open.
VentureScope recruits channel partners for B2B companies entering India, Sri Lanka, Pakistan and Bangladesh. It finds, vets and negotiates with the resellers, distributors and system integrators already selling to your buyers. You meet every shortlisted partner, approve every term and own every relationship.
Distribution and sales channels in South Asia
Most foreign B2B companies reach South Asia through a mix of Indian distributors, country partners and local agents.
- Value-added distributors in IndiaIndia has an organised IT distribution system of global and domestic distributors, and vendors sell either directly or through system integrators, value-added resellers and distributors. The larger value-added distributors run reseller networks across many states.
- Distributors appointed for India and the SAARC regionIndian distributors are often appointed for India and the wider South Asian (SAARC) region, and some Sri Lankan distributors cover India and Bangladesh as well.
- System integratorsVendors also sell through system integrators, which implement and support software for enterprise buyers.
- Local agents and exclusive distributorsIn Pakistan the exclusive agency agreement is probably the most common arrangement. In Bangladesh, public-sector buyers prefer local firms acting as exclusive agents or licensed distributors.
Choosing between one distributor for India and the SAARC region and separate country partners is one of the first decisions for South Asia. A regional appointment gives reach and a single agreement. Country partners give the relationships that Pakistan, Bangladesh and Sri Lanka depend on, and Pakistan cannot be reached through an Indian partner: Pakistan suspended all trade with India in April 2025.
Distributors and resellers in India
Channel structure
India's IT channel is organised, with global and domestic distributors, value-added resellers and system integrators. Value-added distributors run large reseller networks: BD Soft, which distributes Brandefense in India, cites more than 1,500 partners across 17 states. The largest distributor is not always the best choice; niche players with deep regional knowledge often perform better. Credentials can be hard to verify from public databases, so check bank references and test the partner's technical staff directly.
Business practices
Buyers are price-sensitive and bargaining is routine, so lifecycle value has to be argued rather than assumed. Decisions are made at the top, and relationships carry weight. Aakrit Vaish, chief executive of Haptik, which sells software to large Indian enterprises, describes approvals that pass from evaluator to manager to the chief financial officer, sales cycles shaped more by relationships than features, and payment that does not arrive before 60 days. Fast, competent after-sales support is read as value.
Agreements and regulation
- Data protection (DPDP Act)The Digital Personal Data Protection Act 2023 applies, and its Rules were notified in November 2025, with obligations phased in over 12 to 18 months. Penalties reach up to Rs 250 crore per breach. Banking and financial services also carry sector-specific data localisation requirements.
- Tax on partner paymentsYour partner charges GST to its own customers. Royalties for software rights paid to non-residents are taxed at source at 20%, plus surcharge and cess, before treaty relief. Under the Supreme Court's 2021 Engineering Analysis ruling, a distributor that buys copies to resell, without any copyright rights, is not paying a royalty and need not deduct tax; wider rights, such as reproduction or sub-licensing, can change that.
Distributors and resellers in Sri Lanka
Channel structure
Colombo is the hub of Sri Lanka's trade, and 20 to 30 relatively large firms handle most of it. A local partner is usually needed. The largest trading houses often carry several foreign principals, some of them competitors, so medium-sized firms are becoming more attractive partners; larger firms suit products that need stock, servicing or national reach. Listed companies publish audited results, which helps due diligence.
Business practices
Price is generally the most important factor in a sale, and after-sales service matters more each year. Government purchases are decided mainly on cost and available financing once specifications are met. Every agreement with a local partner should be in writing, because written records decide disputes.
Agreements and regulation
- Changing partnersAn outgoing agent must provide a no-objection letter before a new representative can be appointed, so agree exit terms at the start.
- Data protection (PDPA)The core obligations of the Personal Data Protection Act No. 9 of 2022, including the rules on cross-border transfers, take effect on 1 January 2027.
- Tax on partner paymentsYour partner handles VAT on its own sales. Royalties and service fees paid to non-residents are taxed at source at 14% before treaty relief.
Distributors and resellers in Pakistan
Channel structure
Foreign software companies sell in Pakistan through an appointed local distributor or their own office with technical and support staff. The exclusive agency agreement is probably the most common arrangement: the supplier uses no other channel and the agent carries no competing products, usually for one to three years with 30 to 90 days' notice to end it. Karachi is the main distribution centre, with Lahore and Islamabad the other key cities.
Business practices
Personal relationships are very important, especially for business sales, and presence is built over time. Price generally remains the dominant buying factor. End users expect comprehensive after-sales support, often with turnkey packages, training and response times from a few hours to several days.
Agreements and regulation
- Payments and foreign exchangePayments abroad for software licences, maintenance and support go through a bank the Pakistani company designates once with the State Bank of Pakistan, up to US$100,000 per invoice without further approval (as reported in 2022). In 2022 and 2023, import restrictions and a falling rupee left one long-established Dell distributor unable to complete a government contract. Agree the payment route and currency before signing.
- Data protectionPakistan has no general data protection law in force; the Personal Data Protection Bill is still a draft. Sector regulators restrict transfers of data held by banks, insurers and hospitals.
- Tax on partner paymentsYour partner handles sales tax on its own sales. Royalties paid to non-residents are taxed at source at 15% before treaty relief; the UK treaty rate is 12.5%, and the US treaty exempts royalties where the recipient has no permanent establishment in Pakistan.
Distributors and resellers in Bangladesh
Channel structure
Foreign companies sell in Bangladesh mainly through resident agents, representatives and licensed distributors, and often do not need to register locally. Public-sector buyers prefer local firms acting as exclusive agents or licensed distributors, and private buyers prefer agents that guarantee after-sales service. The US Embassy warns that a significant proportion of local agents do not meet US standards of business ethics, so screen candidates carefully.
Business practices
Personal contact plays a vital role in building business relationships in Bangladesh, and personal relationships matter when marketing products. Buyers are price-sensitive but increasingly willing to pay more for established brands, and after-sales support is critical.
Agreements and regulation
- Data protection (PDPO)The Personal Data Protection Ordinance 2025 was enacted on 6 November 2025 and amended in February 2026; a revised text is before Parliament. It limits transfers of personal data abroad.
- PaymentsSince October 2024, banks can remit service charges for cloud services, IT infrastructure and remote software applications without Bangladesh Bank approval.
- Tax on partner paymentsYour partner handles VAT on its own sales. Royalties paid to non-residents are taxed at source at 20% before treaty relief; the UK and US treaty rate is 10%.
Success factors and common failures
Company announcements and first-hand accounts from the last five years point the same way across the region.
Success factors
- A distributor that already covers the regionSOCRadar, a threat intelligence company at Series B, appointed RAH Infotech, a New Delhi value-added distributor, as its official distributor for India and the SAARC region in September 2024, citing RAH's presence in government, public-sector, large-enterprise and banking accounts.
- Distributors from the earliest stageBrandefense, an Ankara threat intelligence company that raised a pre-Series A round in December 2023, appointed BD Soft as its value-added distributor in India the following month, and in January 2026 appointed eGuardian, a Sri Lankan company, as distributor for India, Sri Lanka and Bangladesh.
- A specialist distributor for one countryVMRay, a German malware analysis company, signed a distribution agreement with Dhaka-based Smartdata Technologies for Bangladesh in November 2021, a year before its US$34 million Series B.
- An exclusive partner, assessed firstIn Bangladesh, many companies appoint a distributor or local agent on an exclusive basis, and the US Commercial Service advises assessing partners on technical capacity and market experience.
Common failures
- The biggest distributor chosen by defaultIn India, large distributors look attractive, but niche players with deep regional knowledge often perform better.
- Payment terms left until the endHaptik's chief executive calls collections the biggest challenge of selling software in India, and advises settling payment terms early and repeating them through the sale.
- Foreign exchange left unplannedIn Pakistan, letter of credit restrictions and a falling rupee in 2022 and 2023 left a long-established distributor unable to deliver a government contract on its original terms.
- Exclusivity assumed from a large partnerIn Sri Lanka, the largest trading houses often represent competing principals.
- Agents appointed without checksIn Bangladesh, the US Embassy warns that many local agents do not meet US standards of business ethics.
Timing of entry. Other vendors built their own presence first. Cymulate, a security validation company, raised a US$70 million Series D in September 2022 and set up an Indian legal entity the following month, with its own head of India business development and plans to appoint channel partners. SOCRadar, Brandefense and VMRay went through distributors at Series B or earlier.
The role of local partners in South Asia market entry
Across the region, the right partner brings what a foreign company cannot build quickly: relationships with the buyers that matter, local invoicing and support, a route through procurement and foreign exchange rules, and a reputation buyers already trust.
That only holds if the partnership is managed. Partners need training, technical support and regular contact, and they should be chosen against agreed criteria rather than through a single introduction.
Pilot phases and timing in South Asia
The 90-day pilot runs in four phases. In South Asia, each phase works as follows. Fees are set out under fixed fees and commission.
01
Assessment
Days 1 to 15
VentureScope compares India, Sri Lanka, Pakistan and Bangladesh against your product, buyers and readiness, agrees with you which countries come first and whether one distributor for India and the SAARC region, country partners or both fit, and builds the long-list.
02
Outreach and introductions
Days 16 to 45
Approaches go through introductions wherever possible. Partners that express interest are qualified against the agreed criteria, and you meet the shortlist with VentureScope present.
03
Negotiation
Days 46 to 75
Terms cover territory by country, exclusivity and the conditions attached to it, minimum commitments, support obligations, payment terms and currency, tax treatment, reporting, and notice on termination. Each agreement states who bears any tax deducted at source. Take tax advice on treaty relief and on claiming those deductions against tax at home. Nothing is agreed without your approval.
04
Agreements
Days 76 to 90
VentureScope prepares the agreements and manages each one through to signature with the partners ready to commit.
Approval at large Indian enterprises and at public-sector buyers across the region often passes through several levels, which can run beyond 90 days. VentureScope cannot guarantee that an agreement is signed within the pilot, and the first call covers how realistic your timeline is for each country.
Frequently asked questions
Can one Indian distributor cover all of South Asia?
Not all of it. Many Indian distributors are appointed for India and the SAARC region, and that can work for Sri Lanka and Bangladesh where the partner has real local relationships, which the assessment tests before any appointment. Pakistan needs its own partner: Pakistan suspended all trade with India in April 2025.
How do you find distributors in India?
Candidates are checked against agreed criteria, including the customers and regions they already serve, their technical staff and their support capacity. Because public records on private Indian companies are limited, verification uses bank references, accountants, industry associations and the partner's existing vendors.
Do we need a company in each country?
No. Selling through local distributors or agents is the usual first step. In Bangladesh, foreign companies often sell through a local partner without registering locally, and in Pakistan foreign software companies commonly sell through an appointed local distributor.
Which country should we start with?
It depends on where your buyers are and how ready your product is for each market. The assessment phase compares the four countries and recommends an order before any outreach begins.
The call covers your product, which South Asian market should come first and whether suitable partners exist for it. If the pilot is not the right fit, you will hear that on the call. VentureScope also recruits channel partners in Singapore and Southeast Asia, South Korea, and Japan.