A report on Tuesday unveiled the immense potential of India’s ConsumerTech industry which is expected to surge in the total addressable market, reaching approximately USD 300 billion by 2027, with a compound annual growth rate (CAGR) of around 25 per cent.
The driving forces behind this explosive growth are attributed to digital public infrastructure and population-scale solutions. Over 500 million Indians are now actively engaging with daily entertainment and gaming services, emphasising the pivotal role of digitalization in unlocking the nation’s vast consumer potential. Healthcare, financial services, fashion, and on-demand services are also witnessing a surge in demand, fueled by an increase in disposable income and widespread digital adoption.
The report said that social commerce, immersive shopping experiences and mobile gaming are becoming integral components of the global consumer experience, influencing regions such as the US, Europe, APAC and MENA. The Indian ConsumerTech sector is not lagging, experiencing a swift rise in over-the-top (OTT) services, increased participation of women in gaming, commerce and social media, and a notable upswing in green mobility solutions, including the rising popularity of electric vehicles.
Presently, the Total Addressable Market (TAM) for the consumertech industry stands at a substantial USD 100 billion, noted the joint report by Chiratae Ventures, 1Lattice and Google.
Mobility, with a 30 per cent market share, including ride-hailing apps and online car rental platforms, takes the lead, closely followed by entertainment at 25 per cent, encompassing print, digital, and television media. Projections suggest that by 2027, fashion is poised to surpass entertainment, claiming the second leading sector, covering apparel, accessories, beauty, personal care, footwear, jewelry and watches.
“Chiratae projects the Indian consumer industry to be USD 300 billion in revenue by 2027. We have till date invested ~USD 450 Mn into the sector. Key winners backed by Chiratae include Flipkart, Myntra, Cult.fit, Firstcry, Lenskart, GlobalBees, Policybazaar, PlaySimple, Curefoods, Fibe and Rentomojo to name a few. We believe that consumertech sector is both a horizontal and a vertical play with winners at the intersections of horizontal technology disruption and vertical domains such as Health, Finance, Education, Agriculture etc,” said Sudhir Sethi, Founder and Chairman of Chiratae Ventures.
“We continue to invest in companies such as Agrostar, Healthifyme, Miko, Artium, and a new breed of consumer deeptech companies such as KBCols, Aether as well,” he added.
Consumer Behaviour
Lower-income groups and Tier II and III cities are rapidly embracing digital technology, with consumers dedicating over four hours daily to their smartphones. Fintech apps dominate usage, with 77 per cent of respondents leveraging them, followed closely by entertainment apps at 70 per cent. The survey underscored the shift from offline to online platforms and the increasing influence of digital technology on consumers’ daily lives.
Gaming, ecommerce, and healthtech are reportedly emerging as key players in the Indian consumertech landscape. The report noted a surge in online and professional gaming, a significant shift to ecommerce for apparel and groceries, and healthtech experiencing a remarkable CAGR of around 40 per cent. Online pharmacies, in particular, are gaining widespread popularity in metro and Tier I cities.
