# India E-commerce Market --- ## Report Summary The India E-commerce Market worth USD 1.5 billion in 2025 is growing at a CAGR of 18.75% to reach USD 4.5 billion by 2031. Amazon, Flipkart, Paytm, Snapdeal and Myntra are the major companies operating in this market. --- ## India E-commerce Market Report Table of Contents Table of Contents - 1. India E-Commerce Market Overview - 1.1. Market Highlights - 1.2. Market Definition - 1.3. Taxonomy - 2. India E-Commerce Market Ecosystem - 2.1. Ecosystem of Major Entities involved in India E-Commerce Market - 2.2. Ecosystem of Major Players by Product Category - 3. India E-Commerce Market Size by Revenue in INR Bn, FY’18-FY’23 - 4. India E-Commerce Market Segmentation - 4.1. E-Commerce Market Share Based on Product Categories in %, 2022 - 5. Competitor Analysis of India E-Commerce Market - 5.1. Company Profile of Major Companies in India E-Commerce Market - 5.2. Competitive Benchmarking of Players in India E-Commerce Market - 5.3. Website Benchmarking of India E-commerce Market - 6. Industry Analysis of India E-Commerce Market - 6.1. Market Size of Product Categories in India Ecommerce Market - 6.2. Growth Drivers of India E-Commerce Market - 6.3. Major Challenges in India E-Commerce Market - 6.4. Trends in India E-Commerce Market - 7. In-Depth Analysis of India Online Retail Market - 7.1. Tier Wise order volume growth Post Covid of India Online Retail Market in %, FY’23 - 7.2. Tier Wise Market Share of India Online Retail Market in %, FY’22 & FY’23 - 7.3. Order volume & GMV Growth across different E-commerce Categories of India Online Retail Market in %, FY’23 - 7.4. Brand Website and Marketplace growth of India Online Retail in %, FY’23 - 7.5. Brand Website and Marketplace growth Across different E-Commerce Categories of India Online Retail Market in %, FY’23 - 8. Recent Developments - 8.1. Mergers and Acquisition in India E-Commerce Market, 2022 - 9. Government Initiatives - 10. Future Outlook of India E-Commerce Market, in INR Bn FY’23-FY’29 - 11. Macroeconomic Indicators - 11.1. Population of India (2018-2023) - 11.2. India GDP and Inflation Rate (2016-2021) - 11.3. India Currency Exchange Rate (2017-2021) - 11.4. Population Based on Age Group in India 2010-2025 - 11.5. Population of India by Income Class, FY’23 - 12. Frequently Asked Questions --- ## India E-Commerce Market Highlights Market Highlights The India e-commerce market reached INR 12,739.20 billion in FY’23, recording a CAGR of 38.8% during the historic period FY’18–FY’23. The annual growth rate of the market in 2023 stood at 43.5%. The market is projected to reach INR 62,280.70 billion by 2029, growing at a CAGR of 30.3% during the forecast period FY’23–FY’29. Major players in the Indian e-commerce market include Amazon, Flipkart, Zomato, Jio Mart, Bharat Matrimony, Make My Trip, Info Edge, and Ease My Deal. The market’s rapid growth is driven by rising internet penetration, the increasing adoption of omnichannel strategies, expanding market potential in Tier I, II, and III cities, growing Foreign Direct Investments (FDI), and the introduction of web content in local languages. *The India e-commerce market reached INR 12,739.20 Bn in FY’23, with a CAGR of 38.8% during the historic period FY’18-FY’23.* --- ## India E-Commerce Market Definition ### Market Definition **India E-Commerce Market** In this report, the India e-commerce market size is defined on its GMV (Gross Merchandise Value), which is calculated by considering total value of goods and services sold over a given period of time through brand’s website or marketplace. The market is segmented by product categories (online retail, online travel, online food and grocery delivery, online matrimony and classified, other online services). The report encompasses all the players specified in above product category segmentation such as, Amazon, Myntra, Flipkart, Zomato, Swiggy, Jio Mart, Bharat Matrimony, Make My Trip, Goibibo, Info Edge, Ease My Deal, Soul Play and many more. Additionally, the report will analyze market future projections, industry analysis, key factors influencing India e-commerce market. **Online Retail** This segment comprises sale of electronics, apparel, personal care products, and books through an online portal. **Online Travel** This segment covers domestic air ticket booking, rail booking, international air ticket booking, hotel booking, bus/cab booking, and tour packages. **Online Food and Grocery** This segment consists of delivery of food items from various restaurants as also home delivery of grocery items. **Online Matrimony and Classified** Revenue generated from online job portals, real estate services, matrimonial websites, and automotive eservices fall under this segment. **Other Online Services** Other online services include online ticket bookings for entertainment as well as payment for DTH, telephone bills, electricity bills, etc. **Business-to-Business(B2B)** This model refers to online businesses that deal with two or more firms/businesses. Major B2B websites in India include ‘’, ‘’, ‘’, and ‘’. **Business-to-Consumer(B2C)** It is an online portal used by companies to sell products to consumers. Key B2C websites in India are ‘Just Dial’, ‘Click India’, and ‘Sulekha’. --- ## Taxonomy | ID | Parent ID | Label | | --- | --- | --- | | 1 | | India E-Commerce Market Taxonomy | | 2 | 1 | Product Categories | | 3 | 2 | Online Retail | | 4 | 2 | Online Travel | | 5 | 2 | Online Food and Grocery Delivery | | 6 | 2 | Online Grocery and Classified Market | | 7 | 2 | Other Online Services | | 8 | 1 | Business Models | | 9 | 8 | Marketplace Model | | 10 | 8 | Brand’s Website | | 11 | 8 | Inventory-based Model | | 12 | 1 | Transaction Types | | 13 | 12 | Business-to-Business (B2B) | | 14 | 12 | Business-to-Consumer (B2C) | | 15 | 12 | Consumer-to-Business (C2B) | | 16 | 12 | Consumer-to-Consumer (C2C) | | 17 | 12 | Business-to-Government (B2G) | | 18 | 12 | Consumer-to-Government (C2G) | | 19 | 1 | Service Models | | 20 | 19 | E-tailers | | 21 | 19 | Service Providers | | 22 | 1 | Payment and Financial Services | | 23 | 22 | Digital Wallets | | 24 | 22 | Payment Gateways | --- ## India E-commerce Market Ecosystem ### Market Ecosystem **Ecosystem of Major Entities involved in India** The ecosystem of India's e-commerce market is vibrant and dynamic, characterized by a multitude of players offering a wide range of goods and services online. Key players such as Amazon, Flipkart, Zomato, Jio Mart, Bharat Matrimony, Make My Trip, Info Edge, and Ease My Deal dominate the landscape, driving innovation and competition. With diverse offerings spanning retail, food delivery, travel, and more, these major players shape consumer experiences and influence the trajectory of the e-commerce sector in India. --- ## India E-Commerce Market Size (by Value, in INR Bn), 2018-2023 The year-on-year growth rate of the Indian e-commerce market ranged from 37.7% in 2019 to 43.5% in 2023, indicating that the pace of growth has accelerated in recent years. The market has expanded exponentially over the past five years, driven by a surge in internet and smartphone users, favorable policy reforms, and an increase in disposable income. India’s vast and diverse consumer base, spanning both urban and rural populations, presents significant opportunities for growth. E-commerce companies are increasingly focusing on the untapped potential of tier II, tier III cities, and rural areas to broaden their reach and capture new market segments. *The market size of the Indian e-commerce market has grown steadily from INR 2,476.3 billion in FY’18 to INR 12,739.2 billion in FY’23, representing a compound annual growth rate (CAGR) of 38.8% over the past five years.* --- ## India E-Commerce Market Segmentation ### India E-Commerce Market Segmentation by Product Categories (in %), 2022 Online Retail: The online retail product category holds the highest market share of 62.01% in India e-commerce market. This category includes Apparels, Footwear, Consumer Electronics, Jewelry, Home Décor, Toys and Games, Baby Care Products etc. E-commerce platforms provide access to a vast array of products and brands, giving consumers more choices than traditional retail stores. Online Travel: Following closely behind is the online travel segment, capturing 13.82% of the market. This signifies the continued importance of online platforms for booking flights, hotels, and travel packages. Online Food & Grocery Delivery: This segment grabs significant 12.58% share, reflecting the growing trend of online grocery shopping and food delivery, driven by convenience and changing lifestyles. Online Matrimony & Classified: This category holds a smaller share of 3.48%, showcasing the niche presence of online matrimonial and classifieds platforms in the e-commerce landscape. Other Online Services: The remaining 8.11% encompasses a diverse range of online services like online ticket bookings for entertainment, direct to-home (DTH) recharges, telephone bills, electricity bills, water bills, insurance premium payments, and net banking. --- ## India E-commerce Market Industry Analysis ### Market Size of Product Categories in India Ecommerce Market **Online retail market size and growth forecast (2020 – 2028e) in INR Bn** In 2022, the Indian online retail market was valued at INR 5,504.10 billion and is projected to reach INR 20,608.18 billion by 2028, growing at a CAGR of approximately 22.54%. The surge in internet-enabled device usage, coupled with the convenience of online shopping, varied payment options, cashbacks, and discounts, continues to drive the growth of the retail market. Key players in India’s online retail sector include Amazon India, Flipkart, Snapdeal, Myntra, and Nykaa E-Retail Pvt. Limited. The market’s expansion is primarily attributed to evolving customer needs and preferences in the rapidly changing digital landscape. **Online travel services’ market size and growth forecast (2020-2028e) in INR Bn** India’s online travel services market, valued at INR 1,226.63 billion in 2022, is projected to reach INR 8,085.69 billion by 2028, growing at a CAGR of approximately 34.89%. Improved air and rail connectivity between tier I and tier II cities has led to a surge in domestic travel bookings, predominantly through online platforms. Factors such as mergers, partnerships, alliances, increased international tourist visits, and the widespread adoption of online payment platforms are propelling the growth of the online travel market. Additionally, a notable shift toward mobile-based transactions is evident, with a significant portion of bookings now taking place through mobile apps in the Indian online travel sector. **Online food and grocery delivery market size and growth forecast (2020 – 2028e) in INR Bn** The online food and grocery delivery market in India was valued at INR 1,116.55 billion in 2022 and is projected to reach INR 4,659.46 billion by 2028, growing at a CAGR of around 48.62% between 2023 and 2028. The rise in income among India’s middle-class population has been a key driver for the expansion of the online food delivery industry. Increased internet and smartphone usage, along with rapid lifestyle changes, are major contributors to the growth of India’s online food delivery market. Additionally, online grocery platforms are gaining popularity due to growing consumer awareness, improved digital literacy, and enhanced internet accessibility across the country. **Online matrimony and classified market size and growth forecast (2020 – 2028e) in INR Bn** As of 2022, the Indian online matrimony and classified market was valued at INR 309.02 billion and is expected to reach INR 1,871.57 billion by 2028, growing at a CAGR of approximately 33.04% from 2023 to 2028. Online classifieds encompass various categories such as job portals, real estate, matrimony, and automotive e-services. Tech-savvy consumers increasingly prefer online classifieds for their convenience and effectiveness in finding desired results. Key players in India’s digital classified market include Quikr, Sulekha, Just Dial, OLX, and Click India. **Other online services’ market size and growth forecast (2020 – 2028e) in INR Bn** Online services in India include booking tickets for entertainment, DTH recharges, and paying bills for essential services such as telephone, electricity, water, and insurance. The revenue in this sector is projected to reach INR 720.03 billion by the end of 2022 and INR 5,461.69 billion by 2028, growing at a rate of about 37.96% from 2023 to 2028. Advancements in technology within the banking, financial services, and insurance (BFSI) industry have led to a sharp increase in the use of digital financial services and e-wallets across the country. Financial institutions are actively encouraging the adoption of e-financial services to ensure streamlined and efficient operations. ### India E-Commerce Market Growth Drivers **Rising internet penetration rate** Over the period from 2007 to 2022, India has experienced a significant upward rise in its Internet Penetration Rate, marking a substantial increase from 4% in 2007 to 48.7% in 2022. This progressive trend underscores the country’s evolving digital landscape, with notable strides in connectivity and online accessibility, reaching a pivotal milestone in 2019 when the Internet Penetration Rate hit 50%. As more individuals gain access to the internet, a larger consumer base emerges, fostering widespread adoption of online shopping. Improved connectivity empowers users in remote areas, enabling their participation in the digital economy. This surge in online accessibility not only broadens the customer base but also creates a conducive environment for e-commerce businesses to thrive, leading to sustained growth in the Indian e-commerce sector. **Omnichannel on Consistent Rise** As companies adopt omnichannel solutions to meet customer needs, they're now using stores to fulfill online orders. This helps brands deliver faster and improve the overall shopping experience. In the past fiscal year (FY 2023), there was a significant 44.6% increase in orders being shipped directly from stores. Simultaneously, the number of stores using omnichannel technology saw a substantial growth of 58.4% during the same period. This shift highlights a positive trend where businesses are efficiently blending their online and in-store capabilities to better serve customers. **Tier I Cities Constitute the Highest Market Share; Tier II & Tier III Towns Showcase Enormous Potential** As things get back to normal, traditional markets are picking up, and Tier I cities are leading the way. In the Tier I cities, there's been a faster increase in the number of orders compared to smaller cities. The Tier I cities saw a 31.1% jump in orders from the previous year, while Tier II and Tier III cities had growth rates of 23.3% and 22.4%, respectively. Many people have returned to the metropolitan and Tier I cities for work as offices started operating again, and this has boosted business in the top-tier cities, making them stand out in terms of order growth. **Increasing foreign direct investment (FDI)** Increasing FDI in the Indian e-commerce market is helping domestic players expand their businesses. In August 2018, Walmart acquired a 77% stake in Flipkart, marking its entry into the Indian e-commerce market. The entry of Walmart is expected to benefit the Indian economy in multiple ways, particularly through the creation of around 10 million jobs in the coming years. Additionally, Walmart has a history of sourcing more than 90% of its goods locally from the countries where it operates, which will further benefit local sellers. Apart from Walmart, other major investors in the market include SoftBank, Tiger Global, Sequoia Capital, Bessemer Venture Partners, and Nexus Venture Partners. With the increasing participation of foreign players in India’s e-commerce market, competition is anticipated to intensify, leading to the overall development of the marketplace. In 2020, despite the challenges posed by COVID-19, India recorded a 13% growth in FDI at a time when fund flows declined sharply in major economies such as the UK, the US, and Russia. **Web content in local languages** In 2021, about 833.71 million people in India were using the internet., a startup specializing in AI-driven speech recognition, collaborated with Flipkart to enhance the conversational shopping experience. In September 2019, Flipkart introduced a Hindi interface aimed at attracting around 200 million customers from smaller cities. Similarly, Amazon launched its e-commerce platform in Hindi in 2018, allowing users to access product details and discounts in the language. Recognizing that people prefer local languages, companies are increasingly planning to offer web content in regional languages to broaden the customer base of the e-commerce market. ### India E-Commerce Market Challenges **COD and Prepaid Order Returns in %, FY’22 & FY’23** In 2023, there was a slight increase in the percentage of Cash-on-Delivery (COD) orders returned by customers, going from 19.3% in 2022 to 20.9%. On the other hand, the return rates for prepaid orders remained mostly steady, with a small rise from 5.6% in 2022 to 5.8% in 2023. The overall distribution of COD and prepaid orders stayed the same, with 60% of total returns being COD and 39% for prepaid. Interestingly, this pattern remained consistent for both years, showing that COD orders consistently made up more than 60% of returns, while prepaid orders constituted around 39% of returns. **Legal Barriers** In December 2018, the Department of Industrial Policy and Promotion (DIPP) introduced new Foreign Direct Investment (FDI) rules for e-commerce players in India. Amazon and Flipkart, two major e-commerce companies, were unexpectedly affected by these regulations, potentially hindering the rapid 40% annual growth of the country’s online retail industry. The Indian government permitted 100% FDI in the marketplace model but not in the inventory-based model of e-commerce. Stricter regulations were imposed on foreign-owned e-commerce marketplaces (ECMs) following complaints from vendors and traders. The changes included restrictions on ECM-owned businesses selling products on the same portal, a 25% cap on sales by a single vendor, and limitations on exclusive partnerships and preferential services. Furthermore, ECMs were prohibited from influencing product sale prices, impacting seasonal sales promotions by companies like Amazon and Flipkart. As a result, revenue growth for these companies is expected to be negatively affected, as they own businesses such as Cloudtail Retail, Appario, WS Retail, RetailNet, and Omnitech Retail. ### India E-Commerce Market Government Initiatives The Ministry of Commerce and Industry launched the Government E-Marketplace (GeM), an online platform for public procurement in India, on August 9, 2016, with the goal of creating an inclusive, effective, and transparent platform for buyers and sellers to conduct procurement activities in a fair and competitive manner. The value of products and services purchased through the government portal in FY 2023 exceeded INR 2 trillion. As of November 2022, the GeM portal had processed 12.28 million orders valued at INR 3.35 trillion from 5.44 million registered vendors and service providers, serving 62,247 buyer organizations. The Make in India program, launched in 2014, aims to develop industrial infrastructure and boost domestic manufacturing. Similarly, the Draft National E-Commerce Policy encourages FDI in the marketplace model of e-commerce, ensuring a level playing field for all participants. Udaan, a business-to-business (B2B) online trading network, connects small and medium-sized manufacturers and distributors with online merchants while assisting them with logistics, payments, and technology. The platform has retailers in over 80 Indian cities and delivers to more than 500 cities. The Start-up India program, announced by the Indian government in August 2015, has fostered a strong ecosystem for nurturing startups. The government has extended support through initiatives such as the Fund of Funds (with a corpus of INR 100 billion) and Startup India Hub, which serves as a single point of contact for the startup ecosystem. --- ## Company Profile of Major Companies in India E-Commerce Market | Year | Company | Description | | --- | --- | --- | | 1994 | Amazon India Limited | , Inc. is an American multinational technology company focusing on e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence. It is considered one of the Big Five American technology companies, alongside Alphabet (parent company of Google), Apple, Meta (parent company of Facebook) and Microsoft. | | 2007 | Flipkart Internet Private Limited | Flipkart Private Limited is an Indian e-commerce company, headquartered in Bangalore, and incorporated in Singapore as a private limited company. The company initially focused on online book sales before expanding into other product categories such as consumer electronics, fashion, home essentials, groceries, and lifestyle products. | | 2012 | Nykaa | Nykaa is an Indian e-commerce company headquartered in Mumbai. It sells beauty, wellness and fashion products through its website, mobile app, and over 100 physical stores.[4] In 2020, it became the first Indian unicorn startup headed by a woman. | | 2008 | Zomato Limited | Zomato is an Indian multinational restaurant aggregator and food delivery company. Zomato provides information, menus and user-reviews of restaurants as well as food delivery options from partner restaurants in more than 1,000 Indian cities and towns, as of 2022–23. Zomato has 12,000 restaurant partners and more than 1.4 million eateries listed. Additionally, Zomato Gold has approximately 6500 restaurant partners in India Zomato rivals Swiggy in food delivery and hyperlocal space. | | 2011 | BigBasket | BigBasket is an Indian online grocer headquartered in Bangalore, India, and currently owned by Tata Digital. It was the first online grocer in India, set up in 2011. It is a registered company with name as the Supermarket Grocery Supplies Pvt. Ltd. As of January 2023, the company operates in more than 30 cities in India and processes around 15 million orders per month. | | 1996 | Indiamart | Indiamart is India's largest online B2B marketplace, connecting buyers with suppliers. The online channel focuses on giving buyers and sellers a platform of exchange, these can be individuals, SMEs, or big businesses. Indiamart has a large and diverse customer base, ranging from small businesses to large corporations, and covers a wide range of industries including manufacturing, construction, and agriculture. The platform has over 100 million registered buyers and over 6.5 million suppliers listed on its platform. Indiamart has also been expanding its services to include value-added services such as payment processing, logistics support, and marketing services. The company has also launched a mobile app to make it easier for businesses to connect on-the-go. | | 2009 | Uber Technologies | Uber Technologies, Inc., commonly referred to as Uber, provides ride-hailing services, food delivery, and freight transport. The company is headquartered in San Francisco and operates in approximately 70 countries and 10,500 cities worldwide. The company has over 131 million monthly active users and 6 million active drivers and couriers worldwide and facilitates an average of 25 million trips per day. It has facilitated 42 billion trips since its inception in 2010 and is the largest ridesharing company in the United States. | | 1959 | Bharat Matrimony | BharatMatrimony is an online matrimonial service and a part of. It was founded in 2000 by Murugavel Janakiraman, who later met his wife through his own matrimonial site. The company has 130 offices in India, with offices in Dubai, Sri Lanka, United States and Malaysia to cater to customers beyond India. | --- ## India E-Commerce Market Future Outlook ### Future Outlook of India E-commerce Market, in INR Bn FY’23-FY’29 The market size for the Indian e-commerce sector is projected to reach a staggering INR 62,280.7 billion by FY’29, marking a substantial increase from INR 12,739.2 billion in FY’23. The year-on-year growth rate for the market is expected to remain high throughout the forecast period, ranging from 39.7% in FY’24 to 24.5% in FY’29. This indicates a consistent upward trajectory, even though the pace of growth may gradually moderate in later years. The compound annual growth rate (CAGR) for the entire period is estimated at 30.3%, underscoring the strong and sustained growth potential of the Indian e-commerce market. --- ## India E-commerce Market Macroeconomic Indicators ### India Size of Population, (In Million), 2017-2023 India's population was around 1,437 million in 2023, increasing by 30 million from 1,407 million in 2021. By the end of 2025, India's population is predicted to reach 1,500 million. ### Population Based on Age Group in India, (in %), 2010-2025 In the year 2020, The population between the 25-49 age group is the largest age group (36.40%) in India followed by 0-14 (26.40%), 50+ (19.40%), and 15-24 (18%). ### India's GDP, (In USD Bn), 2017-2023 In 2023, India's GDP was valued at USD 3732 billion, up from USD 2710 billion in 2018. The country’s GDP is expected to reach 5000 billion by the end of 2025. ### India Inflation Rate, (In %), 2017-2023 In 2023, India’s Inflation rate stands at 5.66 % an increase of approximately 2.5% from the 2018 inflation rate of 3.94%. During the COVID-19 pandemic in 2020, the inflation rate in India surged unexpectedly to 6.62% from 3.72% in 2019. ### Population of India by Income Class, (in %), 2023 As of 2023, India comprises of majority of the middle-class population which is 57% of the total population of India. After the middle class comes the lower-class category which comprises 33% of the total population of India. The remaining 10% of the population belongs to a high-income class. --- ## Frequently Asked Questions Find quick answers to common questions about India’s fast-growing e-commerce market **Q: How big is India e-commerce market?** A: The India e-commerce market reached INR 12,739.20 Bn in FY’23, with a CAGR of 38.8% during the historic period FY’18-FY’23 **Q: What factors are driving India e-commerce market?** A: Rising internet penetration rate, rise in adoption of omnichannel, increased market potential of Tier I, II, III cities, increasing Foreign Direct Investments (FDI), introduction of web content in local languages. **Q: Who are the major players in India e-commerce market?** A: Amazon, Flipkart, Zomato, Jio Mart, Bharat Matrimony, Make My Trip, Info Edge, Ease My Deal are some of the major players in India e-commerce market. **Q: What is the future of India e-commerce market?** A: The India e-commerce market is expected to reach INR 62,280.70 Bn by 2029, with a CAGR of 30.3% during the forecast period FY’23-FY’29.