In this paper, we examine the effectiveness of e-tendering system for pigeon pea in Karnataka and explore stakeholders’ perceptions regarding online trading to better understand the challenges in implementation of this innovative agricultural marketing initiative. Rest of the paper is organized as follows: Section 2 provides background on e-tendering process in Karnataka. Data and methodology are discussed in the third section, fourth section presents the results, and is followed by the section discussing the salient findings and lessons learnt.