Indian e-commerce market expected to reach $99 billion by 2024

The recently released EY - IVCA India 2021 Trends Handbook on E-Commerce and Consumer Internet Sector shows that over the past five years, the range of e-commerce services at our fingertips has continued to expand, providing greater convenience and accessibility.

Ankur Pahwa, partner and leader, EY India , said India is at an inflection point where digital transformation is seeing widespread adoption, bringing in a new set of users and changing the business landscape , with technology driving innovation in digital payments , on-demand services , analytics-driven customer engagement and digital advertising .

At the same time, there is a rising trend of direct-to-consumer (D2C) in the e-commerce space . In addition, large retailers are adopting omni-channel approaches and the use of deep technology is also increasing.

According to the handbook , players are increasingly looking for new markets and pursuing global expansion plans . The EY-IVCA report also said that although capital is concentrated in large enterprises, more and more young startups are also attracting investment . The industry may see consolidation and exits, and some players are also exploring IPOs to raise funds.

In the next phase of e-commerce development in India , the demand for e-commerce services will surge in the country’s tier-II and tier-III cities.

This new wave of investment in both B2B and B2C e-commerce is creating tremendous opportunities, with innovations being applied to storefronts , local commerce, and e-commerce infrastructure and payments.

For example, Lenskart , Flipkart , Delhivery and Nykaa are likely to go for leading IPOs, unlocking the potential of the sector.

India’s e-commerce sector has witnessed a rise in small investment activities, which has provided impetus to young startups.

The government is also a huge driver of this shift and is working with investors , start-ups and industry bodies such as IVCA to support the growth of the sector.

Moreover, as the COVID-19 pandemic has greatly increased online transaction volume, fintech and social commerce will continue to be favored by investors .

The report also presents growth forecasts for India’s e-commerce industry, estimating that India’s EdTech will grow 3.7 times in the next five years, from $2.8 billion in 2020 to $10 billion.

The Indian e-commerce market is expected to reach $99 billion by 2024 , growing at a CAGR of 27% during 2019-2024 , with grocery and fashion likely to be the key drivers of business growth.

Cross-border e-commerce market

India