By 2027, digital markets are anticipated to generate $350 billion in GMV: Report
By 2027, marketplaces are expected to reach 400 million to 450 million online buyers, help more than 15 million MSMEs expand their operations online, generate $400 billion to $500 billion in enterprise value, and generate seven million employment, according to the report.
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According to a report released by Bain & Company and Accel, the combined gross merchandise value (GMV) of India's online marketplaces is predicted to reach over $350 billion by 2027.
A significant portion of India's growth story over the next five years is likely to come from its sizable offline markets, over $2 trillion in annual consumption spending, rising disposable incomes brought on by the growth of the middle class, and an increasingly digitised base of online shoppers.
By 2027, marketplaces are expected to reach 400 million to 450 million online buyers, generate $400 billion to $500 billion in enterprise value, help more than 15 million MSMEs expand their operations online, and generate seven million new employment.
The survey also identified upstream B2B, fintech, shipping, and logistics as some of the sectors with significant room for expansion for both current marketplaces and the formation of new ones. Additionally, it stated that there could be two main types of scale marketplaces in the future: those geared toward smaller cities and towns and those involved in international trade.
According to the report titled "The Rise of Digital Bazaars in India," digital marketplaces in India currently contribute more than $100 billion in GMV, offering greater convenience and options to more than 200 million consumers and providing financial and logistical support to more than 6 million micro, small, and medium-sized enterprises (MSMEs).
Additionally, marketplaces have made it possible to combine fragmented demand and supply, do away with middlemen, and give businesses access to all of India. Markets have improved financial inclusion by giving traditionally underbanked segments of society greater access to capital, which has had a significant positive impact on the entire economy.
According to the report, as of now, almost 20 markets have attained more than $1 billion in GMV, and many players have found financial success as a result. This has allowed India to develop a lively and prosperous marketplace ecosystem.
More than 135 firms raised money in 2021, financing reached $16 billion, a four-fold increase from 2018, more than 135 companies raised money, and a number of marketplace IPOs, including Nykaa, Zomato, and Policybazaar, were observed.
According to the report, there are potential white spaces in India for marketplaces to emerge in industries like gaming, caregiver services, real estate reservations, creative content, and Web 3.0.
