India’s consumer tech companies will capture the lion’s share of the USD 300 billion online spend pool by 2030, according to a report by Elevation Capital.
According to the report, the optimism is fuelled by India’s rising online consumer spending, estimated to over double from USD 140 billion to USD 300 billion by 2030.
The Indian startup ecosystem is in a promising phase, as the narratives of startup winter recede and India emerges as a bright spot in the global economy. By 2031, India’s GDP per capita is expected to hit USD 5,200 (2.3 times current), accelerating consumer discretionary spending.
Despite the rebounding excitement, scepticism, however, persists around the potential for new large businesses that can be created and become profitable in the consumer tech space.
“This lack of confidence is based on three key arguments- doubts about Indian consumers' willingness to pay for high-quality experiences, the perceived lack of depth in the consumer market and that large marketplaces have already been built, leaving no room for new players,” the report added.
Mukul Arora, Co-managing Partner and Mayank Khanduja, Partner, who leads Elevation’s Consumer Tech investments said, “Of late, India’s startup ecosystem has started questioning the viability of delivering new high-quality businesses in the consumer tech space. With all our conviction, we say yes, these businesses can be built. This is not just because we have partnered with multiple category winners in the past consumer tech waves but because all markers today strengthen our conviction.
“Our consumer tech portfolio and the 100+ consumer tech founders we meet every month show that the market is only getting deeper. With more disposable income in the hands of the consumer, a large share of the new revenue and profit pools would accrue to the consumer tech companies,” they mentioned.
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