In this blog post, we take an in-depth dive into the findings of the report "The Rise of Digital Bazaars in India", which is co-authored by consulting firm Bain & Company and venture capital firm Accel. We provide insight on how businesses can capitalise on these developments.
According to the report, marketplaces in India have become a ubiquitous presence in every major business category, contributing over $100 billion in gross merchandise value (GMV). With a customer base of 200 million to 230 million online shoppers, these marketplaces offer unrivaled convenience and an abundance of choices. They also provide crucial logistical and financial support to over 6 million micro, small, and medium enterprises (MSMEs), empowering them to buy and sell goods or services online.
The report predicts remarkable growth for B2B marketplaces, with GMV expected to soar to $55 billion by 2027 – five times its current size. Online food delivery is also projected to triple in size, reaching nearly $22 billion. B2C ecommerce marketplaces will continue to dominate, capturing 40% of the total GMV.
Impressively, the report highlights that more than 20 marketplaces have already achieved a GMV of over $1 billion, and several players in the industry are now profitable.
Deal volumes in B2B ecommerce experienced a 31% growth in 2022 compared to 2018, cementing its position as the market leader. The report also sheds light on the substantial investments received by digital marketplaces. In 2021 alone, funding skyrocketed to $16 billion – a four-fold increase compared to 2018. Over 135 companies secured funding, and more than 45 companies obtained Series C+ capital.
This report unveils the enormous potential and success of marketplaces in India, painting a vibrant picture of a rapidly expanding landscape with limitless opportunities for businesses and consumers alike.
Source: https://www.bain.com/insights/the-rise-of-digital-bazaars-in-india/
