Online Market Places In India Will Trigger Rs 28 Lakh Crore Gross Revenues, 70 Lakh Jobs By 2027!

A latest report published by Bain & Company and Accel noted that India’s online marketplaces are expected to record a combined gross merchandise value (GMV) of over $350 billion by 2027.

Rise Of Digital Market In India

There are many factors including large offline markets, over $2 trillion of consumption expenditure, rising disposable incomes driven by middle-class expansion, and an increasingly digitized base of online shoppers are likely to contribute majorly to India’s growth story in the next five years.

The report named ‘The Rise of Digital Bazaars in India’ indicates that marketplaces are slated to create $400 billion to $500 billion in enterprise value.

It will have 400 million to 450 million online shoppers, further  enabling more than 15 million MSMEs to grow their businesses online, and create seven million jobs by 2027.

Emergence Of New Market

The report talks about upstream B2B, fintech, and shipping and logistics as some of the areas that pose significant headroom for growth for existing as well as emergence of new marketplaces. 

The next wave of scale marketplaces could emerge in two major categories, those focused on smaller towns and cities and those engaged in cross-border activity, the report noted.

As of today, the Digital marketplaces in India contribute more than $100 billion in GMV, delivering heightened convenience and choices to over 200 million shoppers.

It offers logistical and financial support to more than 6 million micro, small, and medium enterprises (MSMEs), the report said.

Moreover, marketplaces have enabled consolidating fragmented demand and supply, eliminating intermediaries, and offering pan-India reach to businesses. 

Besides this, the overall economy has also benefited immensely, as marketplaces have improved financial inclusion by providing traditionally underbanked segments with greater access to capital.

Overall, the move has allowed India to cultivate a vibrant and successful marketplace landscape.

Around 20 marketplaces have achieved more than $1 billion in GMV so far and many players have turned profitable, stated the report.

The funding had touched $16 billion during 2021, growing four times compared to 2018.

Almost more than 135 companies raised funding, and a slew of marketplace IPOs such as Nykaa, Zomato, and Policybazaar were seen.

According to the report, the categories such as gaming, caregiver services, real estate reservations, creative content, and Web 3.0 are potential white spaces in India for marketplaces to emerge in.