E-Commerce

The Indian e-commerce industry has been on an upward growth trajectory. After a surge in digital adoption during COVID-19, the Indian e-commerce market is estimated to be worth over $55 Bn in Gross Merchandise Value in 2021. Further, this online retail market is estimated to be 25% of the total organized retail market and is expected to reach 37% by 2030. By 2030, it is expected to have an annual gross merchandise value of $350 bn. 

Young demography, increasing internet and smartphone penetration, and relatively better economic performance are some key drivers of this sector. Each month, India adds approximately 10 million daily active internet users- the highest rate in the world. According to 2019 data, nearly 50 per cent of all online retail transactions were done over a mobile 

Close to 100 per cent of pin codes in India have seen e-commerce adoption. More than 60 per cent of transactions and orders in India come from tier two cities and smaller towns. 97% of postal codes ordered at least 1 item during FY20. The e-commerce trend is gaining major popularity even in tier-2 and tier– 3 cities as they now makeup nearly half of all shoppers and contribute three of every five orders for leading e-retail platforms. The average selling price (ASP) in tier-2  and smaller towns is only marginally lower than in tier-1/metro cities. Electronics and apparel make up nearly 70 per cent of the e-commerce market, when evaluated against transaction value. Other new upcoming categories within e-commerce include ed-tech, hyperlocal and food-tech; Ed-Tech alone was responsible for ~17% of total funding received by Indian start-ups in H12020