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.
What Is The E-commerce Sector?
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.
Read this blog to know more about the US e-commerce sector
Top Popular E-commerce Sector Stocks In India
Company |
Ticker |
Market Cap |
Share Price |
Avenue Supermarts Ltd. |
DMART |
₹270,093 Cr |
₹4,165 |
FSN E-Commerce Ventures Ltd |
NYKAA |
₹80,640 Cr |
₹1695 |
Zomato Ltd |
ZOMATO |
₹66,951 Cr |
₹86 |
Info Edge (India) Ltd |
NAUKRI |
₹57,624 Cr |
₹4,472.00 |
IndiaMART InterMESH Ltd |
INDIAMART |
₹13,646 Cr |
₹4,471.55 |
Just Dial Ltd |
JUSTDIAL |
₹6,316 Cr |
₹756.00 |
Infibeam Avenues Ltd |
INFIBEAM |
₹5,595 Cr |
₹21.05 |
Shoppers Stop |
SHOPERSTOP |
₹4,238 Cr |
₹389 |
MSTC Ltd |
MSTCLTD |
₹2,132 Cr |
₹302.5 |
IntraSoft Technologies Ltd |
ISFT |
₹265 Cr |
₹177.80 |
Indian E-Commerce Sector Facts At A Glance
1. The e-commerce in India is expected to reach US$188 billion by 2025.
2. Grocery and apparel segments are likely to be the key drivers of growth.
3. The online penetration of retail is expected to reach 10.7% by 2024. It was 4.7% in 2019.
4. E-commerce is gaining major popularity in the tier 2 and tier 3 cities, contributing three of every five orders for leading e-retail platforms.
5. The Indian e-retail market is estimated to have 300 - 350 million shoppers by 2025.
Past Trajectory Of Investment Returns In The Indian E-commerce Sector
Growth Of The E-commerce Sector In India
Year
|
Value in US$
|
2017
|
39 billion
|
2018
|
50 billion
|
2020
|
64 billion
|
2021
|
84 billion
|
2025
|
188 billion
|
2027
|
200 billion
|
Source: Statista
Read this blog to know how you can buy Amazon shares from India
How To Invest In Indian E-commerce Sector Stocks?
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.
1. Directly
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
- Fee per trade
- Range of facilities on offer
- User experience
- Customer reviews
- Hidden charges
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. You can consult a Cube wealth coach or download the Cube wealth app.
2. Mutual Funds
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. You can consult a Cube wealth coach or download the Cube wealth app.
FAQs Around E-commerce Sector Stocks In India
1. Which e-commerce company is listed in India?
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:
Company |
Market Cap |
Share Price |
Avenue Supermarts Ltd. |
₹270,093 Cr |
₹4,165 |
FSN E-Commerce Ventures Ltd |
₹80,640 Cr |
₹1695 |
Zomato Ltd |
₹66,951 Cr |
₹86 |
Info Edge (India) Ltd |
₹57,624 Cr |
₹4,472.00 |
IndiaMART InterMESH Ltd |
₹13,646 Cr |
₹4,471.55 |
Just Dial Ltd |
₹6,316 Cr |
₹756.00 |
Shoppers Stop |
₹4,238 Cr |
₹389 |
Infibeam Avenues Ltd |
₹5,595 Cr |
₹21.05 |
MSTC Ltd |
₹2,132 Cr |
₹302.5 |
IntraSoft Technologies Ltd |
₹265 Cr |
₹177.80 |
2. Is e-commerce in India a good investment?
Ans. 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. You can consult a Cube wealth coach or download the Cube wealth app.
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.
3. Is Swiggy listed in the stock market?
Ans. 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.
4. What does the future hold for the Indian E-commerce sector?
Ans. The future of the Indian E-commerce sector appears promising, with continued growth expected as more consumers embrace digital shopping. Technological innovations and regulatory developments will likely play significant roles in shaping the industry's trajectory.
5. How can I shop online in India?
Ans. To shop online in India, you can visit E-commerce websites or use their mobile applications. You typically create an account, browse products, add items to your cart, and proceed to checkout. Payment options include credit/debit cards, digital wallets, and cash on delivery.
Conclusion
As the E-commerce industry in India undergoes ongoing transformation, it is imperative for enterprises and investors to maintain flexibility, respond to evolving consumer preferences, and harness technological advancements to retain their competitiveness. Furthermore, policymakers will hold a pivotal position in crafting regulatory frameworks that promote a favorable environment for both growth and innovation within this dynamic sector.
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.
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