Indian Economy News

Indian consumer tech to touch US$ 300 billion by 2027

  • IBEF
  • December 14, 2023

The Indian consumer tech sector is on track to reach a substantial US$ 300 billion by 2027, exhibiting a robust Compound Annual Growth Rate (CAGR) of 25%, according to a comprehensive report by VC firm Chiratae Ventures, in collaboration with decision-support company ILattice and Google. This comprehensive study, incorporating primary surveys and secondary research across the country, identifies the total addressable market (TAM) of the consumer tech sector at an estimated value of US$ 100 billion.

Within this burgeoning sector, mobility claims a dominant position with a 30% share, encompassing ride-hailing apps, automobile marketplaces, and online car rental platforms. Following closely is the entertainment sector, constituting 25% of the TAM, which includes print, digital, and television media. The report forecasts that by 2027, the fashion sector is anticipated to surpass entertainment as the second-leading segment.

The proliferation of digital public infrastructure has resulted in a staggering 500 million Indians engaging with entertainment and gaming services on a daily basis. Furthermore, an additional 220 million Indians express an inclination to invest in on-demand services, underscoring the expanding market potential.

Sudhir Sethi, founder and chairman of Chiratae Ventures, emphasized the dual nature of the consumer tech sector, describing it as both a horizontal and vertical play. He highlighted the emergence of winners at the intersections of horizontal technology disruption and vertical domains such as health, finance, education, and agriculture. Chiratae Ventures has already invested a substantial US$ 450 million into the sector, boasting an impressive portfolio that includes prominent entities like Firstcry, Lenskart, GlobalBees, Policybazaar, PlaySimple, and Curefoods, among others. The firm's strategic investments align with the evolving landscape of the consumer tech sector, positioning it for continued growth and innovation in the years to come.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.