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Business Standard
11 hours ago
- Business
- Business Standard
India's digital economy is primed for significant expansion: Bessemer
India's digital economy is primed for significant expansion, according to a new report released by the India practice of Bessemer Venture Partners. Titled 'Click, Watch, Shop: The Consumer Opportunity in India,' the report outlines how a convergence of technological advances, demographic shifts, and favourable policy developments over the past decade has unlocked what Bessemer estimates to be a $1 trillion digital opportunity. The venture firm points to a 'tailwind trifecta'— rapid internet penetration, a young and tech-savvy population, and supportive government reforms — as key enablers of a new generation of consumer-focused startups. Companies such as Swiggy, Urban Company, Boldfit and Vetic have ridden this wave. They are capitalising on India's growing appetite for on-demand services, health and wellness products, and personalised digital experiences. Looking ahead, Bessemer identifies the continued evolution of online marketplaces, the rise of local content platforms, and shifting consumer aspirations as central to the next wave of growth. 'India presents a $1 trillion dollar digital opportunity. The emergence of multiple consumer marketplaces, platforms and new-age brands in the past decade is a testament to the growing aspirations of an emerging India,' said Anant Vidur Puri, Partner at Bessemer. Puri added, 'This makes us exceptionally optimistic about the potential for many more consumer plays to emerge in the coming years.' Quick commerce The report highlighted that India's burgeoning online commerce sector has witnessed an extraordinary expansion in recent years. Starting from a base of $30 billion in 2020, it is expected to reach $300 billion by the end of the decade in 2030, contributing to a $1 trillion dollar digital opportunity. This demonstrates it is no longer a niche phenomenon catering to a small segment but has firmly established itself as a dominant force within the Indian retail landscape for a significant and growing share of the population. In addition, the recent rise of quick commerce (q-commerce) has introduced a new dimension to the online retail ecosystem, further revolutionising the way consumers access goods. Platforms such as BigBasket, Blinkit, Swiggy, and Zepto have spearheaded this movement, demonstrating the viability and consumer appeal of rapid delivery services. This segment is seeing a further trend of verticalised q-commerce emerging, with startups like Snabbit, Swish and Slikk catering to niche needs. Lastly, direct to consumer (D2C) brands are increasingly catering to an aspirational mass-premium audience — an audience characterised by the demand for newer, better priced, higher quality products. Content revolution The report said that India is also experiencing a content revolution driven by consumers' diverse appetites for entertainment, education, and gaming. Characterised by short attention spans and a multitude of accessible platforms across interests, languages, and budgets, user engagement is rapid, facilitated by frictionless microtransactions or autopay-led subscriptions. Platforms are adapting to these shorter attention spans with quick and engaging content. Over the past five years, short-form video platforms in India have witnessed a 3.6 times growth in daily active users, competing with mainstream digital platforms. Moreover, the rise of virtual tipping, UPI autopay and other micro-transactions is expected to reach $1.5 billion by 2029. They exemplify the growth of UPI-enabled microtransactions, which allow companies to experiment with diverse monetisation models beyond just ads. New Lifestyle The modern Indian consumer's choices increasingly prioritise what were previously seen as lifestyle spending. These include previously thought 'non-essential' spending in areas such as physical and mental health, financial wellness, and pet care. This expenditure has moved from being a good-to-have to a must-have for Indian consumers. For instance, there is increased spending on organic food, protein, fitness gadgets, preventive healthcare, and wellness services. Health-focused food and beverages (F&B) as a category has expanded from about 11 per cent to 16 per cent of F&B spend and is expected to continue increasing as brands have been quick to adapt to this trend. Similar trends can be seen in segments such as financial services, for example, personal finance offerings by players such as Groww. The report concludes with the metrics and numbers that Bessemer tracks to evaluate the robustness of a business. These metrics, pertaining to total addressable market (TAM), acquisition, usage and retention are important for founders to track the health of their business.
Time of India
11 hours ago
- Business
- Time of India
Bessemer Venture Partners sees $1 trillion digital opportunity in India; eyes quick commerce, D2C boom: report
Academy Empower your mind, elevate your skills Global venture capital firm Bessemer Venture Partners has projected a $1 trillion digital economy opportunity in India over the next decade, led by a convergence of commerce, content, and rising consumer a report titled 'Click, Watch, Shop: The Indian Consumer Opportunity', the firm said the upcoming wave of value creation in India's consumer internet space could be five times larger than the last decade, with much of it expected to accrue to startups building in segments such as quick commerce , direct-to-consumer (D2C) brands, and mobile-first content platforms.'Because of confluence of different sets of events, like smartphone penetration, improvement in the overall income levels of the country and the fact that there is a lot of favourable policy developments, we feel that India is well poised to be a trillion-dollar economy on the tech and digital side in the coming years,' said Anant Vidur Puri, partner, Bessemer Venture venture capital firm highlighted quick commerce as a key trend reshaping the online retail ecosystem, where platforms like Zepto, Blinkit, and Swiggy Instamart have driven consumer adoption of rapid delivery report also signals the rise of verticalised quick commerce startups such as Snabbit, Swish, and the consumer brand front, it noted that direct-to-consumer (D2C) startups across fashion, fitness, personal care, appliances, and food, such as Blissclub, Snitch, Mokobara, The Whole Truth, and Minimalist, are catering to the growing demand for aspirational, high-quality products among India's young, digitally native report also outlined strong investor tailwinds in areas like micro-transactions, pet care brands, mobile gaming, and content platforms built for short attention with artificial intelligence (AI) capabilities now embedded across consumer touchpoints, brands are leveraging technology to solve pain points at scale, it Venture Partners, which started its Indian operations in 2006, has invested in more than 80 startups in the country so far, including BigBasket, PharmEasy, Urban Company, and Livspace. Its portfolio has seen nine companies go public, including Swiggy, Indian Energy Exchange , and Bharat this year, Bessemer Venture Partners closed its second dedicated India fund at $350 million, aiming to invest in startups across AI, software-as-a-service (SaaS), fintech, digital health, consumer brands, and cybersecurity domains.
Time of India
11 hours ago
- Business
- Time of India
India's digital economy to cross $1 trillion by 2030: Bessemer Report
BENGALURU: India's digital consumer market is set to cross the $1 trillion mark within a decade, fueled by mobile-first behavior and a wave of new consumer brands, according to a new report by Bessemer Venture Partners. Tired of too many ads? go ad free now The report, titled Click, Shop, Repeat , finds that rising smartphone usage, affordable mobile data and seamless payments have created a 'triple engine' of commerce, content and consumer discernment, making India one of the most dynamic digital economies globally. 'Even if this grows at a simplistic rate of 20% every year, it will still cross the trillion-dollar mark,' said Anant Vidur Puri, Partner at Bessemer Venture Partners, one of the authors of the report. 'Time spent on the phone is just going up and up, access to products is far easier, and consumer aspirations have surged. What used to be a trip to the mall and a visit to the movies has now become a mobile-first experience,' he told TOI in an interaction. The report highlighted that mobile internet penetration, with roughly 800 million smartphone users averaging almost eight hours a day online, is reshaping commerce and brand-building. According to the findings, digital platforms have evolved into virtual shelves that enable smaller, niche consumer brands to find national prominence almost instantly. 'If you can be a new disruptor, a new trend, a unique thing in the market, the new consumer is looking for you, and platforms will come and get you. A brand can now get listed on 20 platforms almost without doing anything. That has changed in the last ten years and why it's a great time to build a brand,' Puri said. Tired of too many ads? go ad free now The report also underscored the growing significance of consumer retention and its impact on long‑term growth. 'A brand can scale very rapidly, but eventually you have to live up to the test. Retention is the single most important thing, it changes your time to revenue predictability, reduces your marketing working capital, increases your Ebitda, and reduces your cash burn. You have to solve one thing, and that is retention,' Puri added. Bessemer's findings point out that India's digital consumer market comprises many niches, making precision in pricing and positioning vital for new brands. 'India is many Indias. What's affordable for one person is different from what's affordable for someone else. You have to define very clearly, is your TAM a Rs 100 lipstick, a Rs 500 lipstick, or a Rs 1,999 lipstick? At each price point, someone will consider it 'cheap' and someone else 'expensive',' Puri said. With an estimated 600 million people in India born after 2001, the consumer trend is being shaped by a generation for whom mobile commerce and digital payments are second nature. 'All of them, by the time they went to college, existed in a world where smartphones, blazingfast internet and e‑commerce were just facts. This generation spends more than 50% of their waking time online, that's where they shop, watch movies, consume content, learn and spend. This is what gives us the conviction that the digital economy will continue to compound for years to come,' Puri said. According to the report, this trend positions India to join the likes of China, where digital commerce accounts for more than 15% of the overall economy, highlighting a long runway for growth. Puri added, 'the quick commerce phenomenon, this brand‑building playbook, almost how do you build a brand for a billion Indians, you don't have to learn from the US. In India, it's about making brands relevant within the cultural context. These are lessons global markets can learn from India.'
Time of India
14 hours ago
- Business
- Time of India
India's digital economy to cross $1tn by 2030: Report
Bengaluru: India's digital economy is set to cross the $1 trillion mark by 2030, according to a report by Bessemer Venture Partners. The report, titled "Click, Shop, Repeat," highlights that mobile-first behaviour and a wave of new consumer brands are driving this growth. Rising smartphone usage, affordable mobile data, and seamless payments have created a "triple engine" of commerce, content, and consumer discernment, making India one of the most dynamic digital economies globally. "Even if this grows at a simplistic rate of 20% every year, it will still cross the $1 trillion mark," said Anant Vidur Puri, partner at Bessemer Venture Partners and one of the authors of the report. "Time spent on the phone is just going up and up, access to products is far easier, and consumer aspirations surged. What used to be a trip to the mall and a visit to the movies has now become a mobile-first experience," he told TOI in an interaction. You Can Also Check: Bengaluru AQI | Weather in Bengaluru | Bank Holidays in Bengaluru | Public Holidays in Bengaluru The report highlighted that mobile internet penetration, with roughly 800 million smartphone users averaging almost eight hours a day online, is reshaping commerce and brand-building. According to the findings, digital platforms evolved into virtual shelves that enable smaller, niche consumer brands to find national prominence almost instantly. "If you can be a new disruptor, a new trend, a unique thing in the market, the new consumer is looking for you, and platforms will come and get you. A brand can now get listed on 20 platforms almost without doing anything. That changed in the last ten years and why it's a great time to build a brand," Puri said. The report also underscored the growing significance of consumer retention and its impact on long-term growth. "A brand can scale very rapidly, but eventually you have to live up to the test. Retention is the single most important thing, it changes your time to revenue predictability, reduces your marketing working capital, increases your Ebitda, and reduces your cash burn. You have to solve one thing, and that is retention," Puri findings point out that India's digital consumer market comprises many niches, making precision in pricing and positioning vital for new brands. "India is many Indias. What's affordable for one person is different from what's affordable for someone else. You have to define very clearly, is your TAM (total addressable market) a Rs 100 lipstick, a Rs 500 lipstick, or a Rs 1,999 lipstick? At each price point, someone will consider it 'cheap' and someone else 'expensive'," Puri said. With an estimated 600 million people in India born after 2001, the consumer trend is being shaped by a generation for whom mobile commerce and digital payments are second nature. "All of them, by the time they went to college, existed in a world where smartphones, blazing fast internet and e-commerce were just facts. This generation spends more than 50% of their waking time online, that's where they shop, watch movies, consume content, learn and spend. This is what gives us the conviction that the digital economy will continue to compound for years to come," Puri said. According to the report, this trend positions India to join the likes of China, where digital commerce accounts for more than 15% of the overall economy, highlighting a long runway for growth. Puri added, "the quick commerce phenomenon, this brand building playbook, almost how do you build a brand for a billion Indians, you don't have to learn from the US. In India, it's about making brands relevant within the cultural context. These are lessons global markets can learn from India."
