This blog goes through the past and current trends of the e-commerce sector in India. It looks at top players of the sector, growth in the past year and how to get advice on investing in the best e-commerce stocks in India.
2021 was an exciting year for the e-commerce industry in India and also globally. The pandemic encouraged online shopping across industries, such as apparels, grocery, pharmacy, cosmetics, etc.
According to the EY-IVCA India Trend Book 2021 report, the e-commerce sector is expected to grow at CAGR of 27% over 2019-24 and reach $99 billion by 2024.
This blog explores the potentially booming future of the Indian ecommerce sector, the top e-commerce players and other key data.
Amazon, Flipkart, PayTM, FirstCry, Zomato, and Nykaa are some of the top e-commerce websites in India. The sector comprises all companies that allow its customers to make online transactions.
From online grocery and apparels shopping to virtual wallet services, everything that involves conducting business online falls within the scope of e-commerce.
1. The e-commerce in India is expected to reach US$188 billion by 2025.
2. Grocery and apparel segments are likely to be the key drivers of growth.
3. The online penetration of retail is expected to reach 10.7% by 2024. It was 4.7% in 2019.
4. E-commerce is gaining major popularity in the tier 2 and tier 3 cities, contributing three of every five orders for leading e-retail platforms.
5. The Indian e-retail market is estimated to have 300 - 350 million shoppers by 2025.
E-commerce is one of the fastest-growing sectors today. It is undoubtedly an alluring option for potential investors. At the same time, it is important to evaluate the sector holistically before investing.
Broadly speaking, there are two ways you can invest in e-commerce sector stocks in India.
There are several brokerage apps that let you buy and sell Indian stocks, including e-commerce sector stocks. Some of the things you'd want to look at before selecting a brokerage app includes
Here, the onus would be on you to pick stocks yourself based on research, analysis, and an honest evaluation of the stock's fundamentals. This is, of course, high effort but at the end of the day, the stock that you end up buying will be tied to your investment goals.
Mutual funds offer an alternative to investors who want to invest in e-commerce sector stocks. Some examples of mutual funds that have e-commerce sector stocks in their portfolios:
The fund manager of a mutual fund does the stock picking and has a team of analysts who constantly monitor the markets for buying and selling opportunities.
Thus, mutual funds are suitable for busy professionals who want exposure to multiple stocks without the hassle of individual stock research and analysis.
There are more than ten e-commerce companies listed in India that include Avenue Supermarts (DMART), Zomato, Shoppers Stop, Nykaa, and more. Here is the stock price and market cap of the top e-commerce companies in India:
E-commerce in India is a rapidly growing domain that includes top brands like Zomato, Nykaa, Dmart, and more. These brands have made goods and services more accessible to a wider audience in India.
Moreover, the Indian e-commerce sector is estimated to hit US$188 billion by 2025, while blockbuster IPOs of companies like Zomato and Nykaa have only solidified the sector's standing. That said, whether or not you should invest in e-commerce stocks in India would depend on various factors like your risk profile and financial goals.
Swiggy is an Indian e-commerce company that was founded in 2014. While the food delivery platform is hugely popular, it isn't listed in the stock market yet. Swiggy's competitor Zomato went public in 2021 with an IPO worth ₹9,375 crores.
Important Note: All facts & figures mentioned in the tables above have been collated from publicly available sources. The companies mentioned in the tables are listed in no particular order and are a reflection of India’s most popular ecommerce sector brands at the moment. Cube Wealth does not recommend purchasing stocks based on popularity alone and suggest you consult a Wealth Coach before putting your hard-earned money into any asset.
Other Blogs You May Like:
on stock picking, poring over excel sheets, financial news, analyzing market trends, tracking the Sensex, researching company fundamentals, comparing mutual funds, reading financial reports, trying to predict the future & losing your sanity!