03 December 2022, Mumbai
India’s e-commerce marketplace is expected to more than triple in value by 2027. So says Bain.
The sector will create seven million jobs in India by 2027. Online marketplaces could also enable 15 million micro, small, and medium enterprises to grow their businesses online.
Deal-making in the short to medium term is likely to be more measured and valuation multiples will see some degree of rationalization. The future of marketplaces, on the other hand, is robust and with strong growth in their gross merchandise value and continued interest from investors, the segment is expected to see ample opportunities and a strong pick-up.
While the marketplace model is popular across multiple categories, upstream business-to-business, fintech, and shipping and logistics are some of the most exciting areas. These sectors show evidence of successful marketplaces as well as significant headroom for the growth of new or emerging players.
India is home to more than 300 funded marketplaces spanning multiple categories such as retail, education, healthcare, travel, and financial services, among others.
Marketplaces have contributed to India’s growth story by offering greater access to capital and innovative financing solutions for traditionally underserved segments, enabling micro, small, and medium segments to transact online, with an increased pan-India reach, and have provided employment opportunities to more than three million gig workers in India.