India Charted: Exploring the Massive Internet Investment Opportunity in India - Part II

Chart#1: Per Capita on Online Groceries in India (in USD)

India is the second largest smartphone market in the world in terms of number of existing/ current users, but it is very far from second in most smartphone-related categories. Below is just an example of per capita spend on online groceries, which ranks far below both the U.S. and even China. Small base but tremendous room for growth.

Source: Ventura Securities

Chart #2: Top 5 Countries Ranked by Real Time Payments Transactions - 2023

India is the overwhelming leader in real-time digital payments in the world. Digital payment is an instant transaction between merchants and buyers. The Indian government launched the vastly popular Unified Payments Interface (UPI) in 2016 and since then it has become the model of real-time digital payments across the world. The system has been adopted by several other countries and could represent one of India’s leading digital exports.

Chart #3: Population of Indians with incomes greater than $10,000

Goldman Sachs estimates that the number of "affluent Indians" will rise from roughly 60 million today to over 100M by 2027. That is nearly a 70% bump in just 3 years and still only 7% of the overall Indian population. Where else in the world is the middle class growing this quickly? Great long-term tailwind for consumer discretionary and consumer Internet companies in India.

Source: Goldman Sachs

Chart #4: India Fintech Revenue 2030 Projection

India's fintech and payments market could grow by a factor of 10x over the next decade, according to a recent research piece by Boston Consulting Group’s “State of the Fintech Report” in 2023. There is a huge opportunity for local Indian e-commerce and fintech companies to capitalize on this nascent opportunity, on both the private and public side.

Source: Boston Consulting Group

About the Author

Akeem Bailey is the Director of Research for EMQQ Global. Previously, Akeem worked at Rondure Global Advisors, where he helped oversee research and due diligence on emerging market equities and at Arisaig Partners, a Singapore-based hedge fund focused exclusively on consumer and internet companies in emerging markets. Akeem began his career living and working in India as a strategy consultant for the Mahindra Group. Akeem holds a B.A. in International Relations from the University of Pennsylvania.

Disclaimer

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.