Should You invest in e-commerce business in India, in this tough competition. The e-commerce business in India has been on an upward growth trajectory. It is expected to surpass the US to become the second-largest e-commerce market in the world by 2034.
The E-commerce market is expected to reach Rs 13,97,800 crore (US$ 200 billion) by 2027 from Rs 2,69,076.5 crore (US$ 38.5 billion) in 2017. India’s e-commerce market has the potential to grow more than four folds. It is expected to Rs 10,48,350 crore (US$ 150 billion) by 2022 supported by rising incomes and surge in internet users.
Online shoppers in India are expected to reach 120 million in 2018 and eventually 220 million by 2025. Therefore the average online retail spending in India was US$ 224 per user in 2017.
Consumer internet companies and e-commerce business in India received more than Rs 48,923 crore (US$ 7 billion) in private equity and venture capital in 2018. Online retail sales in India are expected to grow by 31 percent to touch Rs 2,28,540.3 crore (US$ 32.70 billion) in 2018. It is led by Flipkart, Amazon India, and Paytm Mall. Online retail is expected to contribute 2.9 percent of the retail market in 2018.
Much growth of the industry has been triggered by increasing internet and smartphone penetration and by 2022,. Smartphone users are expected to reach 859 million and e-commerce sector expected to grow 1,200 percent by 2026.
Internet penetration in India grew from just 4 percent in 2007 to 34.42 percent in 2017. It is also registering a CAGR of 24 percent between 2007 and 2017. In FY19, internet penetration in India was 48.48 percent. Although the number of internet users in India is expected to increase from 636 million as of March 2019 to 829 million by 2021.
Internet penetration in rural India expects to grow as high as 45 percent by 2021 compared to the current rate of 25.36 percent. The e-commerce retail logistics market in India estimates at Rs 9,435.15 crore (US$ 1.35 billion) in 2018. It is expected to grow at a 36 percent CAGR over the next five years. Therefore it also received an investment of Rs 43,681.25 crore (US$ 6.25 billion) from January–May 2019.
Reliance to invest Rs 2,00,000 crore (US$ 2.86 billion) in its telecom business. It expands its broadband and e-commerce presence and to offer 5G services.
Here is an Interesting data about the Global E-commerce retail sales from 2019 to 2023