The Indian internet industry is expected to reach a valuation of $5 trillion by 2030, according to a Redseer report. India has the second largest user base in the world with 780 million internet users. India homes people who spend around 7.3 hours per day on their smartphones every day, one of the highest globally. The time is spent across messaging apps, social media, YouTube, OTT content, and short-form video. Interestingly, the time spent on user-generated content is 2X of platform-generated content.
“As digital will continue to play a significant role, India’s internet GMV (not valuation) will grow to about USD 1 Trillion by 2030, equivalent to USD 5 trillion in public and private market cap,” the report adds.
The report says most users come from tier 2 cities and beyond. The increase in digital consumption and digital penetration in Tier 2 and beyond cities are driving the growth in India’s digital advertising ecosystem. The report adds that due to the increasing high flow of consumers India is likely to witness a massive surge in digital ad investments instead of driving sales.
The e-commerce retailers recorded almost double sales the pre-COVID sales in a one-month festival sale event, worth Rs 76,000 crore. In 2019, the sales were recorded sales of Rs 40,000 crore. The report notes that Tier-2 and Tier-3 cities drove festive sales.
The report titled ‘Looking Back at India’s Internet Economy in 2022’ says the recent tech companies saw successful listings but have since found themselves amid a global tech meltdown and fears of an upcoming recession. However, most Indian unicorns and ‘soonicorns’ have continued to see a full scale in revenues and profitability.