India’s internet economy is estimated to be growing over 50 per cent YoY in 2021. It is poised to touch $1 trillion by 2030, according to a report by Redseer Consulting. This growth is driven by a rapidly increasing internet penetration rate, high-speed internet access, and increased online shopping and digital content consumption.
This new digital revolution is enabled by the growing tech adoption in the B2B space. The SaaS market size, which stood at $3.5bn in FY21, is expected to reach $8bn by FY26, with a CAGR of 18 per cent. Tech firms are moving towards profit or are already profitable, with a $150-200 mn profit by India internet in FY21.
Key internet economy sectors including e-tail, eHealth, FoodTech, Online Mobility, and Billpay and Recharge experienced a downward spiral during Covid, but re-emerged much stronger with commendable post-Covid recovery. An expanding and maturing user base which is increasingly satisfied with internet services has further propelled the growth of internet-based businesses.
Logistics, too, has seen a major shift by becoming more reliable and democratised. Earlier, logistics used to be the domain of large, established companies with deep pockets and complex supply chains.
“India’s journey to a $1 trillion consumer internet economy has been a unique story of multiple internet sectors such as e-tailing, e-Health, FoodTech, Online Mobility, and Quick Commerce, coming together to create a strong foundation for a consumption-led economy. The ongoing journey from digital-first to digital forward was a result of multiple internet sectors having shown strong momentum post COVID,” Anil Kumar, CEO and founder of RedSeer said at a recent event company event Ground Zero 6.0.