Page 50 - Edelweiss India Conference 2022 FLIPBOOK

THE NEW EDGE

India Online Consumer Funnel China Online Consumer Funnel
(Million of population, (Million of population,
% of total population) % of total population)

2020 2025P 2020
Access to Internet
Total population 660 - 690 970 - 1,000 950 - 1,000
with access to internet 48 - 50% 67 - 69% 68 - 71%
(Including shared devices)
Online Services Users 280 - 310 700 - 750 750 - 800
Uses payment/banking,
online ticketing, recharges 20 - 22% 49 - 52% 54 - 57%

Online Shoppers 150 - 180 350 - 400 650 - 700
Transacts on online
retail platforms 11 - 13% 24 - 28% 46 - 50%

Smartphone 475 -525 750 - 850 900 - 950
Users 34 -38% 52 - 59% 64 - 68%

Source(s): RedSear Estimates

Access to Internet: Internet adoption has accelerated in India over the past few years,
driven by the decline in data costs. This has led to the number of internet users surging
from 310–330mn in 2015 to 660–690mn users in 2020, implying internet penetration of
48–50% of population in comparison with 68–71% in China.

According to TRAI, a large part of this growth came from the rural areas—with internet
subscription thereof rising from 33% in 2015 to 39% in 2020. Today, internet users in India
consume the highest amount of data in the world at 11–12GB a month. An average Indian
internet user spends approximately 6–7 hours daily on the internet. By 2025, India is
expected to have 970–1,000mn internet users, resulting in internet penetration of 67–69%
(similar to the current base of internet users and internet penetration in China).

Online Service Users: Online services such as ticket booking and mobile recharges

ecosystem. Micro-transactions helped build trust. As banks increased their focus on online
services, a large number of people started using online mediums for such transactions. The
other larger use cases were travel booking, C2C payments, utility bill payments, and taxi/
auto ride-hailing.

Online Shoppers: The number of online shoppers in India touched 150–180mn in 2020
(up from 120–150mn in 2019) with approximately 70% of these shoppers belonging to the
non-metro cities.

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