Despite the funding crunch in the Indian startup ecosystem, ecommerce witnessed the maximum funding in Q2 2022 as compared to the same quarter for the past 9 years. Also, with the recent addition of Purplle, a beauty & personal care vertical marketplace, it is clearly evident how vertical marketplaces are gaining traction and capturing a significant share in the ecommerce industry.
India is home to more than 165 vertical marketplaces. Vertical marketplaces offer personalized customer experience since they are specialists in a particular niche. As the vertical marketplaces continue to witness growth, it is essential to deep dive into the trends and know more about major startups and the customer sentiment towards them in the space. That is exactly what we have done in our latest release — State Of Ecommerce In India, Q2 2022
The Indian ecommerce sector is expected to grow significantly due to the rising popularity of the vertical marketplaces, growth of the D2C model, the emergence of the roll up models, a boom in the number of online shoppers, the growing popularity of content commerce, the government’s initiatives to promote digital adoption and the rise of the same due to the outbreak of the Covid-19 pandemic.
Among all the sectors in the Indian startup ecosystem, ecommerce is the one with the highest number of unicorns in the space and within ecommerce, marketplace is the sub-sector with the highest number of unicorns.
Among the ecommerce sub-sectors, the marketplace is the most heavily funded. The startups following the marketplace model account for 59% of the total funding raised by the ecommerce sector during 2014- Q1 2022.
It is also observed that among marketplaces, vertical marketplaces are gaining traction due to the personalized customer experience, variety of choices and better discounts and offers provided by them.
Supported by government initiatives, a rise in the internet and smartphone penetration, an unprecedented growth in the number of online shoppers and the growing popularity of the vertical marketplaces, the Indian ecommerce market opportunity is estimated to reach $400 Bn by 2030.
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