The report broadly classified India’s digital consumer base into the following three groups:
India’s internet economy, which grew by more than 50% year-on-year in 2021, is poised to be a $1 trillion economy by 2030, according to findings released by RedSeer on Thursday.
The study noted that this healthy expansion was being driven by rapidly increasing Internet penetration rates, high-speed Internet access, and increased online shopping and consumption of digital content.
Anil Kumar, CEO and Founder, RedSeer, said: “India’s journey to a $1 trillion consumer internet economy will be a unique story of many internet sectors coming together like e-tailing, e-health, foodtech, online mobility and quick commerce To lay a strong foundation for a consumption driven economy.”
According to the Redseer report, the country’s population is extremely heterogeneous, and the needs of one section of the population may differ from those of other regions. In this context, the report broadly classified India’s digital consumer base under the following three groups:
The first are quasi first-world people of 80–100 million, who receive annual incomes of more than $12,000, typically live in metropolitan areas, and expect high-quality services.
The second group includes people who essentially have an annual income of $5,000 to $12,000, and are aspirational and budget-conscious. This segment has an estimated digital population of 100-200 million.
The third category includes a population of 400–500 million from rural areas and tier-II cities, who primarily receive an annual income of less than $5,000, and are probably the hardest-to-reach group, and need to address their problems. Digital intervention is needed to help solve that.
Major internet economies, such as e-tail, ehealth, foodtech, online mobility, and billpay and recharge, initially experienced a downward spiral during the COVID, but have re-emerged very strong and are on the verge of a commendable post-pandemic recovery. with jolted the markets, it said.
Redseer also observed that global investors were increasingly recognizing India’s golden opportunity in the Internet economy without a second thought. In calendar 2021 alone, 42 unicorns in the country attracted $40 billion in funding. “Furthermore, we expect another 70 more tech IPOs by 2025. This boom in tech IPOs is due to accelerated digitization, government initiatives for startups, increasing local investors with high equity and private equity in tech companies. funding,” the study said.