Page 41 - Edelweiss India Conference 2022 FLIPBOOK

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Business models for Bharat

As internet penetration is deepening into hinterlands, businesses are creating the infrastructure
needed to cater to rising demands. Consider this: e-commerce now delivers to 98% of the pin
codes in India. Another instance: despite a meagre 50–55mn online food delivery users in India,
Zomato has a presence in 525 cities in the country and plans to scale it up to 700-plus cities. The
tremendous success of India’s payment infrastructure, led by the government’s UPI, has played
a pivotal role in ushering in this – now pervasive – digital evolution. The tremendous success

of India’s payment
As digital penetration accelerates, overall gross transaction value (GTV) of India’s consumer
internet market is expected to explode to USD300bn by FY26, up from USD90bn in FY21— infrastructure, led by
that’s an eye-opening 25% CAGR. The growth is clearly driven by the expanding funnel the government’s UPI,
considering the population with access to internet will jump to 950–1,000mn by FY26, has played a pivotal
from 650-700mn in FY22—an 8% CAGR. role in ushering in this –
now pervasive – digital
Meanwhile, online transactions would multiply at a 22% CAGR to 700–750mn (up from evolution
250–300mn). With this, digital adoption will become widespread.

India Consumer Internet-Overall Market India Consumer Internet GTV-Overall
Gross Transaction Value Market
USD bn (Monthly GTV Annualised, includes consumer USD bn CAGR, includes consumer internet
internet products/services products/services

>300

+25%
1.2 - 1.5X Higher
than pre-Covid +42%
~ -90%
125+
90+

Jan 20 Apr 20 Jun 20 Aug 20 Dec 20 Mar 21 FY21 FY22P FY26P
(Pre-Covid) (Peak Lockdown)

leverage rising digital adoption. Realising this huge opportunity, investors are lapping up

turned unicorn last year, a majority of them – and no surprise – leveraged technology to
cater to their customers.

Edelweiss Securities Limited 39