E-commerce start-ups in India
A variety of e-commerce start-ups enjoyed a steady inflow of private equity and venture capital. This allowed start-ups to fulfil local demands. In recent years, some internet startups had established a stronghold in the market becoming an important part of household necessities. Some of these successes include food delivery services like Swiggy and Zomato, Grofers and Big Basket for grocery online, ticketing company BookMyShow and travel/hospitality companies Oyo and MakeMyTrip.Moreover, the funding for the e-commerce sector increased significantly to about 11 billion U.S. Dollars in 2021. The e-commerce unicorns have been growing out into new industries and areas. Additionally, these start-ups are placing increased emphasis on ESG (Environmental, Social, and Corporate Governance) objectives. Further, the use of electric cars in delivery services of Zomato and Swiggy is growing, while Nykaa is implemented a recycling system for its product packaging.
Digitalization in e-commerce sector
Digitalization made huge leaps, thanks in part to the Digital India initiative by the government, enabling electronic and online infrastructure throughout the country. Despite recent digital shifts in India’s retail sector, pandemic-related updrafts have boosted e-commerce adoption among both consumers and enterprises. In order to simulate human-to-human contact and offer consumers 24/7 assistance, chatbots and other AI technologies have been deployed. This has afforded consumers the possibility of improved customized services due to increased access to accurate product information.Consumers in Tier 2 and Tier 3 cities are more inclined to opt for buying online thanks to a greater selection of payment options, including attractive offers from e-wallets. The use of Smartphones undoubtedly contributed to the transition of mobile shopping to a point where it was estimated that every third Indian shopped online using a smartphone. Amazon and Flipkart were the largest players in this segment, battling neck and neck every festive season over extravagant sales. The government’s aim to create a trillion-dollar digital economy by 2025 may become a reality after all.
