Festive Season Drives 30% Rise In Offline Spending, Kiwi Data Shows

As India celebrates the festive season, consumers are showing a clear preference for supporting local merchants, with offline spending per user soaring by 30 per cent. According to data from Kiwi, India’s first platform for credit purchases via UPI, this surge is a significant boost for the local retail sector during Dhanteras and Diwali.

Kiwi's data reveals that Indian shoppers have gravitated towards small, local shops and general stores, with the majority of transactions happening at these neighbourhood stores. The festive spirit has given a timely uplift to local retail businesses, with General Stores alone seeing a remarkable 55 per cent increase in spending. Other categories, including Jewellery (up by 17 per cent), Groceries (up by 24 per cent), Dining (up by 18 per cent), and Electronics (up by 24 per cent), also experienced substantial growth, underscoring the diverse spending patterns as consumers prepare for the celebrations.

Local businesses were the clear beneficiaries, with small stores in Tier-1 cities seeing a 31 per cent rise in spend-per-user, while in Tier-2 cities, this number grew by 29 per cent. In contrast, larger retailers saw more modest increases of 23 per cent and 17 per cent, respectively, in these cities. These figures illustrate a strong community-driven shopping pattern, where consumers chose to support their local merchants over bigger retail chains.

Regional trends also showcased varied preferences in spending. In Tier-1 cities, shoppers focused more on experiences, with dining spending up by 22 per cent and jewellery purchases increasing by 18 per cent. Meanwhile, in Tier-2 cities, consumers leaned towards essential items, with Electronics purchases growing by 41 per cent and General Store spending experiencing a significant 64 per cent rise.

“Credit on UPI is a uniquely Indian solution that effortlessly connects consumers with local businesses,” said Mohit Bedi, Co-founder of Kiwi. “This festive season, we saw the true spirit of community, as shoppers flocked to small merchants, enjoying the flexibility and convenience that Credit on UPI offers.”

Kiwi’s Credit on UPI platform continues to revolutionize festive shopping by providing users with an easy, flexible credit option, enabling them to support local businesses. The data, gathered from 400 cities and a user base of over 1 lakh, highlights how the platform has brought the festive shopping experience to life for consumers across India.